Among those still in the running for embattled PrimeWater Infrastructure Corp. is Metro Pacific Investments Corp., led by tycoon Manuel V. Pangilinan.
But noticeably absent are the country’s two biggest water groups: Maynilad Water Services, whose shareholders are Metro Pacific, the Consunjis and Japanese giant Marubeni, and tycoon Enrique Razon Jr.'s Manila Water Co.
Insiders tell us both water giants were indeed offered the chance to purchase PrimeWater but walked away due to the exorbitant selling price.
“[It’s] a number beyond our wildest dreams,” one concessionaire said.
“It was offered to us. Too many problems and they’re asking for the moon,” the second group said.
Maynilad, which is getting ready for a P46-billion public listing, initially looked at the business but decided not to continue, although major shareholder Metro Pacific pursued talks.
One of the concessionaires said there was no reason to make a deal now given the potential cancellation of PrimeWater's joint venture deals that make up a large part of its business.
“Not unless you can pick and choose water districts and maybe at 10 cents to the dollar valuation—then forget it,” this insider said. “It will implode, in my opinion.”
Another insider from a third business group noted that the Villars were selling all of PrimeWater when just some of its assets appeared attractive.
So far, it seems like a case of buyer beware.
“The timelines, parameters are too rushed. Info incomplete to get to a price. It will now depend on the risk appetites of the potential buyers,” the third insider said.
This makes the interest of Metro Pacific, whose largest shareholders are the Salim family of Indonesia and the Ty family, all the more intriguing.
Whether it’s a smart move by MVP for a rare asset with 1.7 million homes across the country—or a misguided bid for rapid growth—remains to be seen.
It’s not like Metro Pacific needs to go at this alone. One conglomerate said they were keen on partnering with MVP and others as long as the terms made sense.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
