Manila Water to acquire 51% stake in Indonesian firm
MANILA, Philippines - Manila Water Company is acquiring a 51% stake in an Indonesian water supply company.
In a disclosure to the stock exchange, Manila Water said it signed a share purchase agreement with Suez Environment to acquire the latter's 51% equity in PT PAM Lyonnaise Jaya (PALYJA). The value of the deal was not disclosed.
PALYJA operates the water supply concession contract of Western Jakarta under a 25-year agreement with government-owned PAM Jaya.
The deal is still subject to government and regulatory approvals in Indonesia and other conditions.
Manila Water, the concessionaire for the east zone in Metro Manila, has been expanding its overseas business in recent years.
Earlier this year, Manila Water acquired a 47.35% stake in Kenh Dong Water Supply Joint Stock Co. in Vietnam.
In December 2011, the Ayala-led company acquired a 49% interest in Thu Duc Water, another Vietnamese bulk water supply company.