Prime Infra Strengthens Commitment to Manila Water Expansion with Ayala Stake Acquisition

COURTESY: Prime Infrastructure Capital Inc.

Prime Infrastructure Capital Inc. (Prime Infra), led by Enrique K. Razon Jr., has made a significant move to bolster its influence and commitment to Manila Water Company, Inc. with its recent acquisition of Ayala Corporation’s remaining stake. This strategic acquisition underscores Prime Infra's dedication to strengthening the growth and expansion trajectory of the Philippines’ leading water utility firm. The move is poised to enhance the operational and developmental capabilities of Manila Water, both domestically and internationally.

Prime Infra's Chairman, Enrique K. Razon Jr., expressed his optimism about the acquisition, stating, "Manila Water continues to deliver reliable and efficient water and wastewater services to communities in key metros in the Philippines and abroad. We look forward to the company’s future as we continue optimizing the business and expanding both our domestic and international operations." This acquisition not only solidifies Prime Infra's market leadership but also aligns with its broader strategy of leveraging intra-group synergies to capture emerging opportunities.

Manila Water will significantly benefit from Prime Infra’s extensive expertise and proven track record in business development, project delivery, and the operation of long-term assets in highly regulated industries and complex geographies. By integrating Prime Infra's strategic approach, Manila Water aims to further enhance its service delivery and operational efficiency.

Guillaume Lucci, President and CEO of Prime Infra, emphasized the strategic importance of the move, stating, "The development solidifies Prime Infra’s market leadership in the water sector, driven not only by the performance and potential of Manila Water at home and abroad, but also by its synergy with our other majority-controlled bulk water subsidiary WawaJVCo Inc." This synergy is expected to drive substantial improvements in infrastructure and service delivery, thereby reinforcing Manila Water's position as a leading water utility firm.

The acquisition also highlights the synergy between Manila Water and WawaJVCo Inc., another key entity under Prime Infra’s control. WawaJVCo is currently operating Phase 1 of the Wawa Bulk Water Supply Project and is in the process of developing the significantly larger Phase 2 Upper Wawa Dam, which has the capacity to deliver 710 million liters per day (MLD) of raw water. This collaboration is set to enhance water supply capabilities and ensure sustainable water resources for the regions served.

By aligning the operations of Manila Water and WawaJVCo, Prime Infra aims to create a more resilient and efficient water supply network. This integrated approach is expected to drive significant improvements in water distribution and management, benefiting communities and industries alike.

The acquisition of Ayala’s remaining stake will result in Trident Water, a Prime Infra unit, holding an 81.9% voting stake and a 62.2% economic interest in Manila Water, with the remainder to vest upon completion of payments. This strategic consolidation of control is expected to facilitate more streamlined decision-making and accelerate the implementation of growth initiatives.

With Prime Infra's robust strategic vision and operational expertise, Manila Water is well-positioned to embark on an ambitious expansion journey. The company plans to leverage Prime Infra's resources and capabilities to explore new markets and enhance its service portfolio, thereby driving sustainable growth and delivering greater value to its stakeholders.

In conclusion, Prime Infra's acquisition of Ayala’s remaining stake in Manila Water marks a significant milestone in the company's growth trajectory. By reinforcing its commitment to Manila Water's expansion, Prime Infra is set to drive substantial improvements in water utility services, both in the Philippines and abroad. This strategic move not only strengthens Prime Infra's market leadership but also underscores its dedication to delivering reliable and efficient water services to communities worldwide.