Metro Pacific Investments Corp. (MPIC), the local flagship of Hong Kong-based First Pacific Co., is planning to buy out one of its minority partners in Maynilad Water Services Inc. via a share swap deal.

In a disclosure to the Philippine Stock Exchange, MPIC said it has agreed in principle to purchase French utility Lyonnaise Asia Water Ltd.'s (LAWL) 5.8 percent stake in Maynilad in exchange for MPIC shares.

MPIC will acquire 236,000 B shares held by LAWL in Maynilad for P1,000 each or a total of P2.03 billion. With the purchase, MPIC’s holdings in Maynilad will increase to 56.8 percent from the current 51 percent indirect stake through DMCI-MPI Water Co.

Under the same agreement, LAWL, formerly Suez Lyonnaise des Eaux, will get a 7.7 percent stake or 791.11 million shares in MPIC also valued at P2.03 billion. The shares will be issued via a private placement on or before June 30, 2009.

Following the issuance of shares, MPIC shall file with the PSE an application for the listing of these shares.

MPIC said the transactions are subject to certain conditions, including the execution of a definitive share subscription agreement and the securing of the formal approval of the board of directors of the company.

MPIC’s acquisition of an additional stake in Maynilad is in line with with its objective to consolidate its interests in the utility firm.

The company recently acquired 67.1 percent of the Manila North Tollways Corp., the operator of the North Luzon Expressway.