Posted by asean_investor > 2013-10-31 19:00 | Report Abuse

Manila Water Co.(MWC:PM; MWTCY:OTC US) is a full service water utility company based in the Philippines. On October 9, 2013, according to the Business section of The Philippines Daily Inquirer news article, “Manila Water expands Vietnam presence”, (http://business.inquirer.net/146635/manila-water-expands-vietnam-presence), the Company, through its parent company, The Ayala Group has expanded presence in Vietnam. This was done with the closing of a deal to acquire approximately 31.5 percent stake in Ho Chi Minh City-based SaiGon Water shares. The price was 16,900 Vietnamese dong per share, or approximately Philippine Pesos (PHP) 34.18 per share, which is worth approximately PHP627.9 million. SaiGon Water has been listed in Ho Chi Minh City Stock Exchange for a little over a year, since September 2012. In a drive to limit its activities to projects where revenue is guaranteed, SaiGon Water in 2011 decided to focus mainly on environmental infrastructure development. The latest deal by Manila Water provides the Company with several opportunities to tap into the Indo-China market for infrastructure development, particularly in the areas of water and sanitation-related infrastructure needs. The Company is also capitalising on the global water shortage issues and is trying to diversify its overseas business. This is at a time where its domestic market looks to be saturated, and management is facing tremendous pressures on the revenue front. Particularly with issues relating to the ongoing disagreements with the Filipino water regulator, the Metropolitan Waterworks & Sewerage System (MWSS), which ordered the Company, and another company, Maynilad Water Services, Inc. to cut its utility tariffs. This came as a result of a pledge by some Filipino lawmakers to investigate 15.0 billion pesos (USD 342.0 million) in income taxes and other expenses that water utilities passed on to domestic consumers. Read more: http://www.asean-investor.com/manila-water-co-inc-mwcpm-mwtcyotc-us-quenching-investors-thirst-for-growth/