San Miguel Corporation, the diversified conglomerate controlled by tycoon Ramon S. Ang, has completed its P1.02 billion acquisition of the interests of Razon-led Manila Water Company in two Bulacan water projects.
In a disclosure to the Philippine Stock Exchange (PSE), Manila Water said the closing conditions for its Share Purchase Agreement executed by Filipinas Water Holdings Corporation (FWHC) with SMC Bulacan Water Services Corporation has been complied with on Oct. 22, 2024.
The agreement calls for the sale of all of FWHC’s interests constituting 90 percent stake in Bulakan Water Company Inc. (BWCI) and 90 percent stake in Obando Water Company Inc. (OWCI).
With this, amendments to the respective Joint Venture Agreements were also executed on Oct. 22, 2024, whereby SMC Bulacan replaces FWHC as the joint venture partner of the water districts.
FWHC sold its shares in BWCI at P4.486 per share while its stake in OWCI is priced at P4.748 each. Proceeds of the transaction would be used to finance “other strategic initiatives” of Manila Water.
BWCI is a joint venture corporation with the Bulakan Water District operating the water and sanitation concession in the municipality of Bulakan while OWCI is a joint venture corporation with the Obando Water District operating the concession in Obando also in Bulacan.
Prior to this development, SMC’s Luzon Clean Water Development Corp. (LCWDC) provided water services to the province through the Bulacan bulk water supply project (BBWSP), a public private partnership project of the national government.
LCWDC said last year that it will also make available affordable water from the Angat reservoir to more than 350,000 households in Bulacan by early 2025 with the implementation of Stage 3A of the BBWSP covering the water districts of Baliwag, Norzagaray, Hagonoy, Pandi, San Ildefonso, San Miguel and San Rafael.
LCWDC supplies treated bulk water to 13 water districts of Bulacan that, in turn, distribute to 220,000 households in cities and municipalities that include Balagtas, Bocaue, Marilao, City of Meycauayan, Obando, City of San Jose Del Monte, Bulakan, Calumpit, Guiginto, City of Malolos, Paombong, Plaridel and Sta. Maria.