MANILA, Philippines - Ayala Corp. and its water unit Manila Water Co. Inc. are investing in Vietnamese infrastructure companies, as it seeks to expand in Vietnam.
The Ho Chi Minh City Investment Joint Stock Company (CII) gave Ayala and Manila Water the right to buy a 10% stake in CII and a 49% stake in Kenh Dong Water Supply Joint Stock Company.
With the issuance of the award, Ayala and Manila Water will negotiate and execute separate agreements to buy CII's shares and interests. The value of the deals were not disclosed.
"This investment primarily supports and complements the expansion of Manila Water Co. as it gradually builds its presence in Vietnam. At the same time, this also provides strategic access to other related infrastructure opportunities which may be of value to the group," said Fernando Zobel de Ayala, Ayala Corp. president and Manila Water chairman.
"We recognize Vietnam is a high growth area in the region and there is strong demand for infrastructure investments. This may potentially present opportunities for the Ayala group to establish presence across several sectors."
CII is a leading Vietnamese infrastructure company, with water treatment plants and toll roads in Ho Chi Minh. The company also holds a stake in Thu Duc Water BOO Corp., a water treatment firm now 49% owned by Manila Water.
Kenh Dong owns and operates major water infrastructure in the city. Its water treatment plant is expected to start commercial operations in the second semester of 2012. It currently has a bulk water supply contract with Saigon Water Corp., which manages the water supply in Ho Chi Minh city.