Enrique Razon Jr., Chairman of Manila Water; This billionaire also has control over: … [+]
Casino and port billionaire Enrique Razon Jr. has doubled his investment in Manila Water by purchasing an additional P14.5 billion ($252 million) worth of shares in the water utility company from Ayala Corp. There is.
The company said Mr. Razon, through private equity firm Trident Water, will purchase an additional 23.6% stake in Manila Water common stock from Ayala Corp. for P12.9 billion, and will acquire Manila Water from Ayala’s Philwater over the next five years. The company plans to purchase 1.6 billion pesos worth of preferred stock. Based on Ayala Corporation’s regulatory filings with the Philippine Stock Exchange. Trident currently owns about 52% of Manila Water, according to the utility’s website.
“This transaction is in line with Ayala Corp’s strategy to rationalize its portfolio and raise P50 billion in proceeds,” Ayala Corp said. “These transactions bring the total proceeds from Ayala’s portfolio rationalization initiatives to approximately P51.5 billion.”
Following the completion of the transaction, Ayala will no longer own Manila Water’s common stock, while its 12% economic interest in preferred stock will be reduced to zero by 2029 upon full payment by Trident. Ayala Corp., one of the country’s oldest conglomerates with interests in banking, real estate and telecommunications, has sold its stake in Manila Water in recent years.
Razon became the controlling shareholder in the water utility company, which serves 7 million people in Metro Manila’s eastern region, after Trident bought a portion of its stake in Ayala in 2021. The tycoon, who collects most of its wealth from Philippine port giant International Container Terminal Services Corp. and casino operator Bloomberry, has been building out its infrastructure portfolio in recent years.
Through privately held Prime Capital Infrastructure, Razon is building a dam that could increase Manila Water’s production capacity by 30% and developing new deep-water wells in the Malampaya gas field in the West Philippine Sea. With a net worth of approximately $10.3 billion, Mr. Razon is one of the richest individuals in the country.
