Maynilad, backed by Manuel V. Pangilinan-led Metro Pacific Investments Corp. and the Consunji family’s DMCI Holdings Inc., earlier said it was open to expanding beyond its franchise area, which covers the populous West Zone of Metro Manila.
“We are not in discussions with PrimeWater, or to be accurate about it, they are not in discussions with us, with Maynilad,” Ramoncito Fernandez, the president and CEO of Maynilad, said during a media briefing before Maynilad’s P34-billion listing on Friday.
Metro Pacific Water reportedly keen on Villar assets
Fernandez added that while Maynilad isn’t involved in any talks, “our other affiliates can be talked to.”
One such affiliate, Metro Pacific Water, was reportedly in discussions to acquire PrimeWater, according to a report by Manila Standard.
PrimeWater, one of the country’s largest water providers serving 1.7 million homes, was reportedly put up for sale after President Marcos Jr. ordered a probe into mounting consumer complaints over poor service quality.
Deal is possible at the right price
Fernandez did not rule out being interested in acquiring PrimeWater or similar businesses, explaining any such transaction would need to be “value-adding for Maynilad.”
“It depends on a lot of factors, right?” Fernandez said.
“Main consideration will be value. What will be the value that the owners will require from the buyer. At the end of the day, that’s one basic question,” he added.
But not all Maynilad leaders are sold on the idea
InsiderPH reported in its Insider Info column last September that Maynilad and Manila Water Co., the water concessionaire led by tycoon Enrique Razon Jr., had walked away from their initial interest in the Villar water utility due to the high asking price.
“[It’s] a number beyond our wildest dreams,” a Maynilad insider had said.
Analysts’ view
In a detailed report on the Maynilad IPO, AP Securities research head Alfred Benjamin Garcia also noted concerns about a possible PrimeWater deal.
“Sources indicate that the Villars demand a steep premium for the sale of PrimeWater, and we view the company as too problematic to be a positive addition to [Maynilad]. As such, we see a potential PrimeWater acquisition as a key risk rather than a key prospect for the company,” he said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
