Ayala Corp. on Wednesday sold some of its shares in Manila Water Co. Inc. that left it with 23.5 percent voting rights and an effective 22.5 percent economic stake in the East zone water concessionaire.
In a regulatory filing, Ayala said, through wholly-owned subsidiary Philwater Holdings Co. Inc., sold 288.99 million Manila Water common shares and 436.24 million preferred shares in a buyback transaction. The transaction was valued at P5.7 billion.
“The sale is aligned with Ayala’s strategy to rationalize its portfolio and raise P50 billion in proceeds. The proceeds will be used to pare down debt and/or fund future investments,” Ayala said in its disclosure.
Manila Water common shares were priced at P17.1647 per share share based on a 30-day volume-weighted average price as of October 10, less a 4 percent block discount, aligned with the standard deal structure of block sales.
Manila Water shares were last traded Wednesday at P18.20. Its preferred shares were priced on negotiated basis at P1.7165 per share.Manila Water provides water treatment, water distribution, sewerage and sanitation services to more than seven million people in the eastern side of Metro Manila.
The East Zone encompasses 24 cities and municipalities spanning a 1,400-square kilometer area of Metro Manila.
The company now controlled by Enrique K. Razon holds a concession agreement entered into between Manila Water and the Metropolitan Waterworks and Sewerage System in August 1997.
This concession was extended by another 15 years from May 2022 to May 2037.
In June 2021, the Ayala group ceded control of Manila Water to Razon following an agreement where the tycoon bought a 24.96 percent stake but was given voting power for 51 percent of the utility.
