Razon acquires 25% stake in Ayala’s Manila Water

Ports and casino tycoon Enrique Razon Jr., hailed by Forbes as the fourth richest man in the Philippines, has acquired 25% of water concessionaire Manila Water, the Ayala Corporation announced on Monday.

The move will bring in P10.7 billion to Manila Water's capital spending program for an improved water and wastewater distribution system in Metro Manila’s east zone concession.

Razon's infrastructure company Prime Metroline Holdings Inc. will incorporate the new firm Trident Water for the said partnership.

The deal with Razon was described by Ayala Corporation as a display of its "ability to attract sizeable and long-term investments" while noting that it remains a  shareholder in the company with a 38.6% stake.

"Together, both our groups can provide a unique, holistic, and long-term solution to providing predictable and dependable long-term supply to the growing needs of the east zone concession," Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala said in a statement.

Ayala President and COO Fernando Zobel de Ayala, on the other hand, said that he looks forward to accelerating Manila Water's regional endeavors through the new partnership, given Razon’s expertise in "penetrating overseas markets."

Razon, for his part, said that the deal will benefit the customers of the water concessionaire.

"We will dedicate our efforts to further develop this unique business both here in the Philippines and abroad. We are confident that our collective experience, technical capabilities, and corporate synergies will be of great benefit to Manila Water, the people it serves, and its other stakeholders,” he said. — RSJ, GMA News