HONG KONG — Metro Pacific Investments Corp. (MPIC) has begun due diligence on PrimeWater Infrastructure Corp. and its assets, a process that will determine whether the conglomerate makes a formal bid to acquire the water utility from the Villar family.

“We signed a non-disclosure agreement with them, and they’ve opened up the data room to us maybe two or three weeks ago,” MPIC Chairman and Chief Executive Officer Manuel V. Pangilinan said during a hybrid media briefing on Thursday, Nov. 13.

Pangilinan said MPIC is receiving “initial feedback from the preliminary analysis of the numbers.” He added, “I don’t think we’ve finished this first-stage analysis of PrimeWater.”

The executive expects the initial analysis to conclude soon. “It will probably take another week to be able to frame an offer to them. So, nothing is finalized. We are at the beginning of the process. And it’s difficult to predict where we will eventually land,” he noted.

PrimeWater has an estimated 70 to 80 water properties across the Philippines, some small and some large, Pangilinan said. A key question for MPIC is the scope of any potential deal.

“We don't know the approach yet—whether we will bid for only certain properties that are large enough to give us profitability or whether they will insist that we acquire the entire thing,” he said. The executive also noted the issue of outstanding debt within PrimeWater, which has yet to be discussed.

Pangilinan emphasized that any acquisition would need to be commercially viable for the group. “We’re looking. And I think if it works for us—if it’s feasible, commercially feasible for the group—then obviously, we will take a look at it more seriously,” he said.

Discussions are currently happening at the MPIC level because the group’s water distribution arm, Maynilad Water Services Inc., has shareholders who have historically been reluctant to expand beyond its current West Zone concession area.

“I think certain assets of [PrimeWater], the bigger ones principally, should be attractive for Maynilad to acquire. And we would encourage them,” Pangilinan said. He acknowledged that the views of Maynilad partners DMCI Holdings Inc. and Marubeni Corp. “would have to be taken into account.”

“Historically, they have been quite cool to the idea of growth outside the West Zone, but I think we’ve seen a softening of that attitude because of the listing... I think we will know once we make a proposal,” he added.

Maynilad President and CEO Ramoncito Fernandez confirmed that PrimeWater is in talks with Maynilad’s shareholders, not Maynilad directly. He reiterated the importance of commercial feasibility. “If it makes commercial sense, definitely our shareholders will be convinced. Not only MPIC but also the other shareholders in Maynilad should be able to agree and participate in an expansion like that if it makes commercial sense.”