Ayala Corp. and unit Manila Water to invest in Vietnamese companies

Ayala Corp. and its subsidiary Manila Water Co. Inc. will invest in Vietnam’s Ho Chi Minh City Infrastructure Investment Joint Stock Co. and in its infrastructure asset Kenh Dong Water Supply Joint Stock Co.   Ayala was awarded by Ho Chi Minh City Infrastructure the right to buy 10 percent interest in the Vietnam-based company, Ayala and Manila Water said in a joint statement submitted to the Securities and Exchange Commission and the Philippine Stock Exchange.   On the other hand, Ho Chi Minh City Infrastructure awarded Manila Water the right to buy 49 percent of its holdings in Kenh Dong Water.   No amount regarding the transactions was cited in the statement.   “With the issuance of the award, Ho Chi Minh City Infrastructure, Ayala Corporation and Manila Water shall negotiate and execute separate Share Purchase Agreements for the purchase of Ho Chi Minh City Infrastructure’s shares and interests. The cost to purchase the 49 percent interest in Kenh Dong is not more than 10 percent of the total assets of Manila Water,” the statement read.   “This investment primarily supports and complements the expansion of Manila Water Co. as it gradually builds its presence in Vietnam… This also provides strategic access to other related infrastructure opportunities which may be of value to the group,” said Manila Water chair Fernando Zobel de Ayala.   Ayala claimed that Ho Chi Minh City Infrastructure is a leading player in the infrastructure sector in Vietnam, with water treatment plants and toll roads serving Vietnam’s largest city Ho Chi Minh–formerly Saigon–and surrounding areas.   Kenh Dong is expected to start its water treatment plant operations in the second half of the year. It has capacity to treat 200 million liters of water per day, the statement read.   “We recognize Vietnam is a high growth area in the region and there is strong demand for infrastructure investments. This may potentially present opportunities for the Ayala group to establish presence across several sectors,” Zobel de Ayala said. —RRD/VS, GMA News