By James A. Loyola
PT Manila Water Indonesia (PTMWI), a 95 percent-owned subsidiary of Manila Water Company, Inc. in Indonesia, is acquiring a 20 percent stake in a bulk water supply company in Central Java.
In a disclosure to the Philippine Stock Exchange, Manila Water said PTMWI has signed a Share Purchase Agreement with PT. Triguna Rapindo Mandiri to acquire 4,478 shares of PT. Sarana Tirta Ungaran (STU).
This will allow PTMWI to own 20 percent of the outstanding capital stock of STU. Manila Water said it intends to finance the transaction through internally generated funds.
STU is a bulk water supply company servicing PDAM Kabupaten Semarang and industrial customers in Bawen, located in Ungaran area of Semarang Regency, Central Java Province, with a capacity of 21.5 million liters per day.
Its customers include PT. APAC Inti Corpora, a 100-hectare textile and garment manufacturing company.
Manila Water has also ventured into Thailand last month with the acquisition of an 18.72 percent stake in Eastern Water Resources Development and Management Public Company Limited.
In a statement, Manila Water said it has signed a Share Purchase Agreement for its entry into East Water, a publicly-listed water supply and distribution company in Thailand.
“Manila Water marks another milestone in its regional growth, as it establishes its presence in Thailand through East Water.” said Ayala President and Manila Water Board Chairman Fernando Zobel de Ayala.
Zobel added that, “we recognize the opportunities this new market presents for us, and we are eager to share the technical expertise and service quality which Manila Water has developed over the last twenty years.”
He noted that, “from the conglomerate perspective, Ayala sees this development as a strategic entry point into Thailand. With Manila Water leading the way, we hope to leverage our various capabilities to enlarge our footprint in the country.”