MANILA Water Co. Inc. (MWC) said on Tuesday that unit Filipinas Water Holdings Corp. (FWHC) had completed the divestment of shares in two Bulacan water companies to SMC Bulacan Water Services Corp. (SMC Bulacan Water Services).
In a disclosure, Manila Water said that closing conditions of the transaction were completed on Tuesday along with amendments to the respective joint venture agreements with the two firms.
Following the divestment, SMC Water Services will replace Filipinas Water as the partner of Bulakan Water Co. Inc. (BWCI) and Obando Water Co. Inc. (OWCI).
In May, FWHC signed a share purchase agreement with SMC Bulacan Water for the sale of its 90-percent stakes in both BWCI and in OWCI for a total consideration of a little over P1.0 billion.
FWHC sold a total of 135 million shares in BWCI at P4.47 per share and 88.2 million shares in OWCI for P4.75 apiece.
“The transaction will monetize FWHC’s assets, and the proceeds will be used to fund other strategic initiatives of MWC and Manila Water Philippine Ventures Inc., a wholly owned subsidiary of MWC which houses its Philippine business units outside the East Zone concession,” Manila Water said.
Manila Water shares went up by P0.65, or 2.48 percent, to P26.90 each on Tuesday.
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