Japan’s Marubeni buys 20% stake in Maynilad

Rappler.com

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Japan's Marubeni Corp is buying a 20% stake in water distributor Maynilad Water Services Inc

MANILA, Philippines (UPDATED) – Japan’s Marubeni Corp is buying a 20% stake in water distributor Maynilad Water Services Inc from a Pangilinan-Consunji consortium.

The consortium of Pangilinan-led Metro Pacific Investments Corp (MPIC) and Consunji-led DMCI Holdings Inc. currently has a 92% stake in Maynilad, the water concessionaire of the metro’s west zone. 

Marubeni then becomes the 3rd strategic investor in the water firm.

At the DMCI Holdings annual stockholders meeting on Wednesday, July 25, Isidro Consunji of DMCI said his group will receive P14 billion from the sale of its 16% stake in Maynilad to Marubeni.

To round up the 20% bloc in Maynilad, Marubeni will acquire the remaining 4% from the MPIC group. 

The Marubeni deal is part of an agreement with Japan International Cooperation Agency (JICA), which offered a 40-year-loan loan at an interest rate of around 1%. The agreement reportedly required that Marubeni acquires 20% of the water firm.

The parties expect to close the deal in September. DMCI will then be left with a 25% economic interest in Maynilad, and MPIC with 52.8%. – Rappler.com

Editors Note: Earlier, we reported that Marubeni will buy the 20% stake in Maynilad for $2 billion. The amount represents the value of 100% of Maynilad.  

Related story: 

MPIC, DMCI to sell stakes in Maynilad for Marubeni entry

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