Manila Water successfully closes East Water acquisition in Thailand
Manila Water Company, Inc. (“Manila Water”) has successfully completed its acquisition of a significant stake in Eastern Water Resources Development and Management Public Company Limited (“East Water”), a publicly-listed water supply and distribution company in Thailand. This follows the fulfilment of conditions precedent in line with the Share Purchase Agreement between Manila Water and Electricity Generating Public Company Limited (“EGCO”) signed last month, for an 18.72% stake in East Water.
With this acquisition, earnings contribution from East Water will immediately be recognized in Manila Water’s books, reflecting the terms and conditions under which the transaction has been completed. Equally important, the Board of Directors of East Water has elected Mr. Virgilio C. Rivera, Jr., Manila Water’s New Business Operations COO, and Chairman of Manila Water (Thailand) Co., Ltd., as one of its members.
Manila Water Company President and CEO, Mr. Ferdinand dela Cruz said: “We are very happy to have quickly closed our acquisition of East Water, effectively cementing our entry into Thailand. This perfectly aligns with our internationalization strategy, as we place primary focus on Southeast Asia. With Mr. Rivera representing us on East Water’s Board of Directors, we are very excited to work with East Water on the many growth opportunities we see in the pipeline.”
East Water provides raw and tap water supply services, with volume in excess of 1,000 million liters per day (MLD), in the eastern region of Thailand—the country’s main industrial area and home to various heavy industries; including automotive, electronics, and petrochemicals. Currently, East Water provides raw water supply to three (3) provinces; operates seven (7) tap water concessions, and provides water service to several industrial estates – all situated within a total area of 13,285 square kilometers; a region nearly as large as CALABARZON here in the Philippines. East Water presents significant growth potential by way of the Eastern Economic Corridor (EEC), the Thai government’s initiative to further develop the country’s eastern seaboard into a leading economic zone in ASEAN.