Manila Water acquires stake in Indonesian bulk water supply company
Manila Water recently signed a Share Purchase Agreement with Indonesian bulk water supply company, PT. Sarana Tirta Ungaran (“STU”) to acquire a 20 percent stake. With a capacity of 21.5 million liters per day, STU services PDAM Kabupaten Semarang, a regency in Central Java, and industrial customers in its Bawen District including PT. APAC Inti Corpora, a 100-hectare textile and garment manufacturing company. Manila Water, the leading provider of water and wastewater services to industrial customers and developments in the country, sees this investment as an opportunity to leverage its technical capability to establish its market presence in the region.
This acquisition follows the recent agreement to purchase a stake in East Water in Thailand equivalent to 18.72 percent, aligning squarely with Manila Water’s regional growth strategy through its international subsidiary, Manila Water Asia Pacific. This acquisition will be financed through internally-generated funds.
Perry Rivera, President of Manila Water Asia Pacific, stated “[t]his acquisition expands our footprint in Indonesia, after the successful completion of our showcase leakage reduction project in Bandung in 2017. This clearly demonstrates our continued interest in the Indonesian market, and provides an opportunity to further strengthen our growth platform and harness the vast potential for synergies within the ASEAN region.”