The billionaire Enrique Razon Jr is increasing his investments in Manila Water by purchasing an additional 14.5 billion pesos worth of shares from Ayala Corp. Through his investment vehicle, Trident Water, Razon acquired a 23.6% stake in Manila Water common shares from Ayala Corp for 12.9 billion pesos and will also buy 1.6 billion pesos of Manila Water preference shares from Ayala’s Philwater over the next five years. Trident currently holds about 52% stake in Manila Water, making Razon the controlling shareholder of the water utility.
Ayala Corp stated that the transactions are part of their strategy to rationalize their portfolio and raise 50 billion pesos in proceeds, with a total of 51.5 billion pesos expected from their initiatives. Following the completion of the transaction, Ayala will no longer hold common shares in Manila Water and their economic stake through preferred shares will drop to zero by 2029 upon full payment by Trident. This move comes as Ayala has been divesting its stake in Manila Water in recent years, focusing on its other interests such as banking, property, and telecommunications.
Razon’s investments in Manila Water are part of his efforts to build up his infrastructure portfolio. He has plans to boost Manila Water’s capacity by 30% through the construction of a dam and developing new deepwater wells in the Malampaya gas fields in the West Philippine Sea. With a net worth of about $10.3 billion, Razon is one of the country’s wealthiest individuals, deriving his wealth primarily from his businesses in the Philippine port industry and casino operations.
Razon’s continued investments in Manila Water demonstrate his confidence in the utility company and the potential for growth in the water sector. With his infrastructure projects aiming to improve water supply and capacity in Metro Manila’s eastern region, Razon is positioning himself as a key player in the development and expansion of Manila Water’s operations. This move also aligns with Razon’s overall strategy of diversifying his investments and expanding his presence in the infrastructure sector.
As Manila Water continues to serve seven million residents in Metro Manila’s eastern region, Razon’s investments will play a significant role in ensuring the utility company’s ability to meet the growing demand for clean water in the area. With his track record of success in various industries, Razon’s involvement in Manila Water signals a positive outlook for the company and its stakeholders. The completion of the transaction with Ayala Corp marks a new chapter for Manila Water under Razon’s leadership and sets the stage for further growth and development in the water utility sector.
