Ultra bilyonaryo Enrique K. Razon Jr.’s Manila Water has completed the sale of all its holdings in two water utilities in Bulacan province for P1.02 billion.
According to a stock exchange filing by Manila Water, SMC Bulacan Water Services Corp., led by San Miguel Corp. chairman Ramon S. Ang, has fulfilled the closing conditions for its purchase of 90% of the shares of both Bulakan Water Company Inc. (BWCI) and Obando Water Company Inc. (OWCI).
The transaction includes 135 million BWCI shares and 88.2 million OWCI shares. Full payment will be made upon closing.
Filipinas Water, a wholly-owned subsidiary of Manila Water, divested from the utilities to support its parent company’s expansion strategy.
“The proceeds will be used to fund other strategic initiatives of Manila Water and Manila Water Philippine Ventures, which manages assets outside the East Zone concession,” the company said in the filing.
This acquisition strengthens Ang’s water-related interests in Bulacan, where San Miguel operates a province-wide bulk water supply system serving 24 municipalities.
Manila Water confirmed that all closing conditions for the sale were satisfied on October 22.
BWCI is a joint venture with Bulakan Water District, providing water and sanitation services in the municipality of Bulakan. OWCI is a similar joint venture with Obando Water District, operating in the municipality of Obando, both located in Bulacan province.
