DMCI-MPIC water venture converts P2.8-B into equity

ABS-CBN News

Posted at Jul 06 2009 06:51 PM | Updated as of Jul 07 2009 02:51 AM

MANILA - The joint venture for the water concession area for the west part of Metro Manila is converting previous P2.8 billion worth of advances from partners, DMCI Holdings and Metro Pacific Investment Corp (MPIC), into an equity infusion.

DMCI-MPIC Water--a 55-45 joint venture between Consunji-led DMCI Holdings and MPIC, the local unit of Hong Kong-based First Pacific Co. Ltd.--has filed with the Securities and Exchange Commission an application to increase its authorized capital stock by 2.8 billion to P8.8 billion.

Previously booked as shareholder's advances, the P1.9 billion from MPIC and the P961 million from DMCI will be converted into shareholder equity.

Metro Pacific will be converting P1.9 billion worth of advances while DMCI will be converting P961 million worth of advances.

In 2008, DMCI extended $20 million advances to the joint venture as part of its deposit for future stock subscription.

First Pacific Co. Ltd., MPIC's parent, and Ashmore Investments Management Ltd. earlier put in $192 million unsecured term facility in the DMC-MPIC Water. The facility carried a conversion option.

MPIC increased in stake in DMCI-MPIC Water last year to 55 percent after acquiring Ashmore’s 24.1 percent interest and First Pacific’s 10.3 percent stake in the joint venture.

Maynilad earlier filed with Metropolitan Waterworks and Sewerage System, a petition seeking to extend its water concession contract by another 15 years.

DMCI-MPIC Water, which has 84 percent stake in Maynilad Water Services Inc., took over the west concession area in 2007. It has since invested P13 billion rehabilitate old pipelines and upgrade water facilities.