Energy and water conglomerate Vivant Corporation reported that its wholly-owned subsidiary Vivant Hydrocore Holdings Inc. (VHHI) is divesting its stake in Watermatic Philippines Corporation (WMP) in favor of its Israeli joint venture partner.
In a disclosure to the Philippine Stock Exchange (PSE), Vivant said Watermatic International Inc., its co-shareholder in WMP, signed a share sale and purchase agreement on Oct. 11, 2024 with the execution of final transaction documents upon full payment.
Under the agreement, VHHI will sell its 60 percent interest in WMP, consisting of 31.88 million shares, to Watermatic International at the par value of P1.00 per share for a total of P31.88 million to be paid in installments.
WMP is a joint venture company of Vivant Corporation and WaterMatic International, an Israel-based manufacturer of advanced water and wastewater treatment systems.
It is in the business of providing engineering, procurement, and construction services particularly supplying and procuring the assembly, installation, lay-out, commissioning, operation, and maintenance of water and wastewater treatment facilities in the Philippines.
The divestment was approved by the Board of Directors of Vivant Infracore Holdings Inc. (VIHI) on Sept. 19, 2024 and VHHI on Oct. 10, 2024 and acknowledged and re-affirmed by the Vivant Corporation Board of Directors on Oct. 11, 2024.
VHHI is a wholly owned subsidiary of Vivant Infracore Holdings Inc. (VIHI), the holding company for the water-related investments of publicly listed conglomerate Vivant Corporation.
Vivant said “the exit enables VHHI to strategically focus on further intensifying its growth initiatives across other segments of the water infrastructure sector.”
“Both parties are open to a potential partnership in the future, driven by a shared commitment to introducing innovative water solutions to address the country’s pressing water security issue,” it added.
VHHI signed an agreement with WaterMatic International to establish WMP in 2019. The venture is currently engaged in the design, supply, installation, commissioning, operation, and maintenance of water treatment and wastewater treatment plants.
Watermatic Philippines is currently building VHHI’s 20 million liter per day (MLD) seaweater desalination plant in the municipality of Cordova, Cebu.
Vivant said “the exit will not have any impact on the plant completion by Watermatic Philippines, which is covered by a separate contract.”
The plant, which is expected to be completed before the end of 2024, is touted as the country’s first utility scale seawater desalination facility in the Philippines.
Once completed, the facility will benefit around 20,000 households in Metro Cebu with a sustainable, climate-resilient source of water.