LISTED energy and water conglomerate Vivant Corp. announced that its unit Vivant Hydrocore Holdings Inc. (VHHI) has decided to exit from its partnership with Israel-based company WaterMatic International Ltd. effective Friday, October 11.
In a disclosure, VHHI said that it would be selling roughly 32 million common shares, or 60-percent interest, in the joint venture (JV) entity, Watermatic Philippines Corp. (WMP), at a price of P1.00 apiece.
“The exit enables VHHI to strategically focus on further intensifying its growth initiatives across other segments of the water infrastructure sector,” Vivant said.
“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.”
Its Israeli partner will be acquiring VHHI’s 60 percent stake in WMP through a share sale and purchase agreement on an installment and deferred basis.
VHHI and Watermatic International established the JV in 2019 to engage in the design, supply, installation, commissioning, operation, and maintenance of water treatment and wastewater treatment plants.
WMP is currently building VHHI’s 20-million-liter per day seawater desalination plant in Cordova Cebu, the country’s first utility-scale seawater desalination facility.
The facility is expected to be completed before the year-end, benefiting around 20,000 households in Metro Cebu with supply of sustainable, climate-resilient water.
“The exit will not have any impact on the plant completion by Watermatic Philippines, which is covered by a separate contract,” Vivant said.
VHHI’s wholly owned subsidiary Isla Mactan-Cordova Corp. is overseeing the project after having been awarded the contract to supply desalinated water to the Metropolitan Cebu Water District in 2021.
Vivant shares were unchanged at P18.00 each on Friday.
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