MANILA WATER Co., Inc.’s subsidiary Filipinas Water Holdings Corp. has completed the P1.02-billion divestment of Bulakan Water Co., Inc. and Obando Water Co., Inc., the water utility company said on Tuesday.
The transaction between Filipinas Water and SMC Bulacan Water Services Corp. has satisfied the closing conditions, according to a regulatory filing by the east zone concessionaire.
This move follows Filipinas Water’s decision five months ago to sell its 90% stake in Bulakan Water, totaling 135 million shares, and its 90% stake in Obando Water, totaling 88.2 million shares.
“The proceeds will be used to fund other strategic initiatives of [Manila Water],” the company said.
Bulakan Water is a joint venture with Bulacan Water District to operate the concession for the provision of water and sanitation services in Bulakan town.
Meanwhile, Obando Water is a joint venture corporation with Obando Water District to operate the concession in the municipality of Obando.
With the divestment, SMC Bulacan replaces Filipinas Water as the joint venture partner of the water districts.
Manila Water serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera