Metro Pacific expands footprint in Vietnam water market
MANILA, Philippines – A subsidiary of Manuel Pangilinan-led Metro Pacific Investments Corporation (MPIC) is buying a 49% stake in one of the largest water utility companies in Vietnam for P1.98 billion.
MPIC told the Philippine Stock Exchange (PSE) on Monday, April 2, that its subsidiary MetroPac Water Investments Corporation has entered into a share purchase agreement to buy 3.926 million shares in Tuan Loc Water Resources Investment Joint Stock Company (TLW).
The deal allows MPIC, through MetroPac Water, to expand further into Vietnam's water market. (READ: Metro Pacific net income rises by 15% in 2017)
TLW is one of the largest water companies in Vietnam, with 310 million liters per day (MLD) of installed capacity and a billed volume of about 87 MLD as of end-2017.
Majority of TLW's 310 MLD of operating capacity will be supplied to industrial parks. It has 3 main project assets.
Song Lam Raw Water Treatment Plant, with an installed capacity of 200 MLD, supplies raw water to Nghe An Water Supply JSC and surrounding industrial parks.
Meanwhile, Ho Cau Moi Water Treatment Plant has an installed capacity of 90 MLD, expandable to 120 MLD. It supplies treated water to Dong Nai Water Company and surrounding industrial parks.
Nhon Trach 6A Sewage Treatment Plant, with an installed capacity of 20 MLD, handles the wastewater treatment facility for the 400-hectare Nhon Trach 6 Industrial Park in Dong Nai province.
The completion of the transaction is subject to fulfillment of customary conditions.
Under the agreement, the parties have until June 30 this year to complete the transaction.
This is the second acquisition made by MetroPac Water in Vietnam.
Last November, MetroPac Water also acquired a 45% stake in Boo Phu Ninh Water Treatment Plant Joint Stock Company (PNW) for P615 million.
Boo Phu Ninh Water holds a 50-year build-to-own contract to develop a water supply system, which would meet clean water demand in the Chu Lai Open Economic Zone, urban areas, industrial zones, and adjacent rural areas in Quang Nam province.
MetroPac Water operates water projects that collectively provide 150 MLD of water in Cebu, Laguna, and Iloilo.
Back in December 2017, the water utility firm bagged the P12.35-billion Iloilo water distribution project. – Rappler.com