French firm gives up Maynilad stake for Metro Pacific shares

MANILA, Philippines - A French utility has agreed to sell its stake in Maynilad Water Services Inc. to Metro Pacific Investments Corp. in exchange for MPIC’s shares. In a report to regulators, MPIC, which is part of the consortium which operates Maynilad, said Lyonnaise Asia Water Pte. Ltd. (LAWL) will be issuing 236,000 Maynilad common shares for the total amount of P2.03 billion. For its part, MPIC agreed to issue about 791 million common shares from its unissued capital or 7.75-percent stake in the company for about P2.57 each or a total of about P2.03 billion. The transaction will take place on or before June 30, 2009. “It is anticipated that following the acquisition of...Maynilad Shares, MPIC will have a 56.8-percent stake in Maynilad, consisting of its current 51-percent indirect shareholdings, through DMCI-MPI Water Co. Inc. and anticipated 5.8-percent direct share from LAWL," the company said. LAWL was the original partner of the Lopez family which originally won Metro Manila's west concession in 1997 until Maynilad it sought protection from creditors. After being temporarily controlled by government, it was later sold to a venture between MPIC and DM Consunji. - GMANews.TV