MANILA - Enrique Razon's Prime Infrastructure is acquiring Ayala Corp's stake in Manila Water Corp (MWC).

In a disclosure to the stock exchange, Ayala Corp said its various units that hold shares in Manila Water are selling their stakes to Prime Infra's Trident Water.  

"The gross consideration for these transactions among AC, Michigan, and Philwater (collectively, “Ayala”), and Trident will be P14.5 billion," Ayala Corp said.

When these deals are completed, Ayala said it will no longer hold common shares of MWC and its voting stake will be zero.

Ayala will retain an effective 12.08 percent economic stake through preferred shares which will be paid on an installment basis, it said.

"Once the preferred shares have been fully paid for in 2029, Ayala’s economic stake in MWC will drop to zero," the company added.

In a separate statement, Prime Infra said the deal underscores the Razon-led company's "commitment to strengthen the growth and expansion trajectory" of MWC.

“We look forward to the company’s future as we continue optimizing the business and expanding both our domestic and international operations,” said Razon, chairman of both Prime Infra and Manila Water.

Guillaume Lucci, President and CEO of Prime Infra, said the move is in line with Prime Infra’s intra-group synergy as the company also controls bulk water supplier WawaJVCo Inc.

The acquisition of Ayala’s remaining stake will result in Trident Water holding 81.9 percent voting stake and 62.2 percent economic interest, the remainder of which will vest upon completion of payments.

Ayala began divesting from Manila Water in 2020 after former President Rodrigo Duterte began lashing at it and the Manny Pangilinan-led Maynilad after a Singapore court ordered the Philippine government to pay the two firms for losses due to disallowed water rate hikes from 2013 to 2017.

Manila Water meanwhile earlier also disclosed that it divested its stake from the Bulakan Water Company, Inc. and Obando Water Company, Inc. with SMC Bulacan Water Services Corporation.

Manila Water is the concessionaire for the East zone of Metro Manila.