The group of businessman Manuel V. Pangilinan (MVP) is in talks with the Villar Group for the possible acquisition of the assets of PrimeWater Infrastructure Corp.
Pangilinan said his group has signed a non-disclosure agreement with the Villar Group, who has also opened its data, some two to three weeks ago for a due diligence on its operations.
‘So, we’re getting initial feedback from the preliminary analysis of the numbers as they’re provided to us. That’s all. I don’t think we finished this first stage analysis of PrimeWater. Probably takes another week to be able to frame an offer to them,’ Pangilinan said in a media briefing.
‘So, nothing is finalized. We are at the beginning of the process. And it’s difficult to predict where we will eventually land. I think they have about 70 to 80 properties all over the Philippines.’
He said there some of the properties are big, but there are also small ones.
‘And so we don’t know the approach yet, whether we will bid for only certain of the properties that are large enough to give us profitability or whether they will insist that we acquire the entire thing.’
Pangilingan said the discussions also included some PrimeWater debts.
‘So, no valuations indicated by us to them. So, we’re looking. And I think if it works for us, if it’s feasible, commercially feasible for the group, then obviously we will take a look at it more seriously.’
Pangilinan said the deal may involve Metro Pacific Water but there may be some assets that west zone concessionaire Maynilad Water Services Inc. may be interested in.
‘I think certain assets of PrimeWater, the bigger ones principally, should be attractive for Maynilad to acquire. And we would encourage them. Obviously, the views of DMCI (Holdings Inc. of the Consunji Group), our partners in Marubeni, would have to be taken into account.’
Pangilinan said historically its partners in the utility firm have been quite cool to the idea of growth outside the West Zone, but he said they have seen a softening of that stance because of the recent listing on the Philippine Stock Exchange.
Ramoncito S. Fernandez, Maynilad’s president and CEO, said PrimeWater is not in talks with them but with its shareholder, Metro Pacific Investment Corp.
Maynilad, he said, may enter the fray if it makes ‘commercial sense,’ not only to MPIC, but also to its other shareholders.