<article>Diversified Philippine conglomerate <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Aboitizhttps://www.dealstreetasia.com/?s=Aboitiz" target="_blank" rel="noopener noreferrer">Aboitiz Group</a> has consolidated its water investments following two new acquisitions in local companies.</article>

Diversified Philippine conglomerate <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Aboitizhttps://www.dealstreetasia.com/?s=Aboitiz" target="_blank" rel="noopener noreferrer">Aboitiz Group</a> has consolidated its water investments following two new acquisitions in local companies.
The conglomerate consolidated all its water investments under its infrastructure unit <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Aboitiz+InfraCapital" target="_blank" rel="noopener noreferrer">Aboitiz InfraCapital Inc (AIC)</a>, which acquired LiMA Water Corporation (LWC) on August 1, and an 11.13 per cent minority stake in Balibago Waterworks System Inc (BWSI) on August 3.
A subsidiary of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=aboitiz++equity" target="_blank" rel="noopener noreferrer">Aboitiz Equity Ventures (AEV)</a>, AIC bought more than 2.7 million shares in BWSI previously held by the San Fernando Electric Light &amp; Power Co Inc (SFELAPCO), priced at P100.65 per share for a total of about $5.4 million (P275 million).
&#8220;The minority stake in BWSI enables Aboitiz InfraCapital to be part of an established water market participant,&#8221; AEV said in its statement. &#8220;BWSI is expected to contribute to Aboitiz InfraCapital’s net income through dividends.&#8221;
BWSI provides running water to more than 150,000 households throughout its franchise areas.
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After 54 years in public service, the National Water Resources Board (NWRB) considers BWSI the largest and most efficiently operated provincial privately owned waterworks system in the Philippines.
<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=aboitiz" target="_blank" rel="noopener noreferrer">Aboitiz Power Corp</a>, the holding company for AEV, has 43.78 per cent effective interest in SFELAPCO.
&#8220;Through AIC’s investment in BWSI, AIC will partner with an established market player in the water sector operating over 50 water distribution franchise areas throughout the country,&#8221; AEV added.
LWC, however, was acquired by AIC from affiliate Aboitiz Land Inc, the land business unit of the Aboitiz Group and took full operational control of LWC on the same day on August 1.
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LWC provides industrial and potable water with a daily capacity of 8,700 cubic meters and a full capacity of 40,000 cubic meters from its own deep well sources and reservoirs.
&#8220;These acquisitions will enable AIC to establish its position as a provider of water and wastewater-related services to residential, commercial and industrial customers. These steps are key for AIC to achieve its goal of building franchises across the entire water value chain,&#8221; said AEV president and CEO and AIC chairman Erramon Aboitiz.
The Aboitiz Group’s first infrastructure venture, Apo Agua Infrastructura Inc is a bulk water project that will provide Davao City with 300 million liters per day.
Apo Agua, a joint venture between AEV and JV Angeles Construction Corporation, had previously signed an agreement with the Davao City Water District to build one of the country’s largest private bulk water supply projects.
Upon completion, the facility will have a capacity of 300 million liters per day of potable water sourced from the Tamugan River to benefit Davao City’s one million residents.
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The acquisitions will enable AIC to establish its position as a provider of water and wastewater-related services to residential, commercial and industrial customers.

Philippines: Aboitiz consolidates water companies after two acquisitions

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