Billionaire Lucio Co, best known as the owner of Puregold Price Club, liquor imports, and Philippine Bank of Communications, is taking over the entire firm as it faced mounting business and political pressures.
The rumored price also lines up with estimates that place PrimeWater as the country’s third-largest water utility.
Industry sources pegged the deal value at around P30 billion, most of which was made up of debt, while the Villar family is estimated to have cashed out roughly P10 billion for its shares.
The value is behind Manuel V. Pangilinan-backed Maynilad Water Services, valued at about P118 billion, and tycoon Enrique Razon Jr.’s Manila Water Co., priced at around P104 billion.
We’re also told AlphaPrimus Advisors, which has done deals for Citicore Renewable, Aboitiz Power, Alternergy, and Chinabank, was an adviser to this transaction.
Co has been making inroads in power and water infrastructure as part of an aggressive diversification push from his core retail business.
The takeover of PrimeWater allows him to leapfrog competitors in entering the space, but while acquisitions like this can be faster, they are not necessarily easier.
Many of PrimeWater’s customers also have high expectations for improved service and reliability in their areas.
Co obviously wants this venture to be a success and is in talks with other experienced water partners to help run the business.
Discussions are already underway, with the group of tycoon Dexter Tiu emerging as a potential ally.
Tiu owns Tubig Pilipinas, whose principals are part of an ongoing deal to take over publicly-traded Coal Asia Holdings.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
