MANILA, Philippines - Metro Pacific Investments Corp. and DMCI Holdings, Inc. on Thursday said they have completed discussions with Marubeni Corp. for the Japan firm's acquisition of a 20% stake in Maynilad Water Services, Inc.
"Marubeni, through an affiliate, will acquire a shareholding of 21.54 percent in DMWCI, the joint venture holding company which will hold 92.85 percent of the shares in Maynilad," MPIC and DMCI said in a joint statement.
As a result of the transaction, MPIC's stake in Maynilad has been reduced by 4% to 52.8%, while DMCI's by 16% to 25.24%. Marubeni will have a 20% economic interest in Maynilad, while the remaining 1.96% will remain with other shareholders.
"This minor reduction in our economic interest in Maynilad allows us to expand the shareholder roster as we take Maynilad to the next stage of development through significantly increased investment in sewage and waste water management," Manuel V. Pangilinan, MPIC chairman, said in the statement.
For his part, Isidro A. Consunji, DMCI president, said: "Marubeni has been a strong partner of DMCI for many years. Its entry into Maynilad will help us gain access to Marubeni’s technical and engineering expertise as well as to Japanese financing institutions, thereby assisting in the further development of Maynilad.
Marubeni is one of the largest trading companies in Japan with interests in the food business, power sector, metals and minerals, real estate, finance, logistics and IT, chemicals, and in forest products, among others.