Manila Water buys equity in Vietnam's Saigon Water

Manila Water Company Inc. on Tuesday said it is buying up to 18.37 million shares in Saigon Water Infrastructure Corporation, via subsidiary Manila Water South Asia Holdings Pte. Ltd., the Ayala-led utility told the Philippine Stock Exchange.

 

Manila Water South Asia has signed an investment deal with Saigon Water covering 31.47 percent of the Vietnamese utility’s outstanding capital stock.

 

Both parties have 105 days to complete the transaction. Manila Water South Asia will pay the subscription prices after Saigon Water complies with the terms and conditions for the equity investment 

 

Listed on the Ho Chi Minh Stock Exchange since September 2012, Saigon Water is eyeing to develop the Saigon Pleiku water plant which will have a treatment capacity of 30,000 cubic meters per day in Gia Lai province.

 

"Saigon Water aims to become the first fully integrated company in the Vietnam water and wastewater infrastructure sector, through the construction of water and wastewater treatment plants and the provision of engineering, operation and management services and other similar activities," said the Vietnamese firm noted in the filing.

 

The latest deal would grow Manila Water's presence in Vietnam. It bought a 49-percent stake in Thu Duc Water Boo Corp. in December 2011. Last year, it bought 47.35 percent in Kenh Dong Water Supply Joint Stock Co. Both companies held bulk water supply contracts with Saigon Water Corp. — VS, GMA News