Philippine-listed water and wastewater services provider Manila Water Company Inc is acquiring a 20 per cent stake in Indonesian bulk water supplier PT Sarana Tirta Ungaran (STU) for an undisclosed amount.
In a disclosure to the Philippine Stock Exchange on Wednesday, Manila Water said its 95 per cent-owned Indonesian subsidiary, PT Manila Water Indonesia, has signed a share purchase agreement with PT Triguna Rapindo Mandiri to acquire STU shares.
“Manila Water intends to finance the transaction through internally generated funds,” the company disclosed.
Manila Water said STU is a bulk water supply company that services PDAM Kabupaten Semarang and industrial customers in Bawen, located in Ungaran area of Semarang Regency, Central Java Province, with a capacity of 21.5 million litres per day.
Manila Water’s acquisition in Indonesia comes after its foray into bulk water and concession projects in Thailand and Vietnam. The company is now the largest direct foreign investor in Vietnam’s water sector.
It has also completed pilot projects in Bandung, Indonesia for a non-revenue water reduction programme, and in Yangon, Myanmar for leakage reduction.
In the Philippines, Manila Water provides water treatment, water distribution, sewerage, and sanitation services to more than six million people in the eastern side of Metro Manila, comprising a broad range of residential, commercial and industrial customers.
It is a subsidiary of the country’s oldest conglomerate Ayala Corporation.