MANILA, Philippines – Ayala-led Manila Water Co. Inc. failed to get approval from Indonesian state-run water company PAM Jaya for the acquisition of a controlling stake in PAM Lyonnaise Jaya (PALYJA), one of the two water utility operators in Jakarta.
In a disclosure to the Philippine Stock Exchange on Wednesday, July 3, Manila Water said PAM Jaya rejected the plan to transfer PALYJA shares from French-controlled Suez Environment to the company’s subsidiary, Manila Water South Asia Holdings Pte Ltd (MWSAH).
“Please be informed that at the close of business hours yesterday, 2 July 2013, we have been furnished with the letter from PAM Jaya to PALYJA informing the latter that PAM Jaya did not give its approval to the transfer of Suez equity in PALYJA to MWSAH,” Manila Water said in the disclosure.
In October 2012, Manila Water said it signed a share purchase agreement with Suez Environment, transferring the latter’s 51% stake in PALYJA to the Ayala-led company.
The agreement, however, required Manila Water to submit certain documents such as:
- Written consent from PAM Jaya
- Confirmation from PAM Jaya of no objection to the transfer of the Suez equity pursuant to the Restated Cooperation Agreement between PAM Jaya and PALYJA
Manila Water wanted to foray into the Indonesian market as part of its regional expansion.
PALYJA has been western Jakarta’s water concessionaire since 1997 under a 25-year agreement with PAM Jaya. – Rappler.com