Philippines: MPIC enters wastewater biz, acquires 65% of ESTI for $38.7m

Visual from ESTII website

Philippine conglomerate Metro Pacific Investments Corp (MPIC) has invested up to $38.7 million (P1.8 billion) to acquire a 65 per cent controlling stake in Eco-System Technologies International Inc (ESTI), a local environmental technology solution provider.

The acquisition marked the entry of MPIC into wastewater treatment business.

MPIC vice president Melody del Rosario earlier disclosed the conglomerate’s wholly owned subsidiary Metropac Water Investments Corporation (MWIC) has acquired 65 per cent of the outstanding capital stock of ESTI which is engaged in the business of designing, supplying, constructing, installing, and operating and maintaining wastewater and sewage treatment plant facilities.

“The Transaction allows MPI (through MWIC) to diversify its water sector investment holdings and invest in the high growth wastewater EPC and O&M market,” Del Rosario informed the local bourse.

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Transacted on Thursday, MWIC bought from ESTI a total of 12 million Class A common shares priced at P141.67 per share, and 1 million Class C common shares sold at P100 apiece, representing 60 per cent and 5 per cent of total outstanding capital stock of ESTI, respectively.

Headquartered in Mandaluyong City, ESTI was established in 1995 is the current Engineering, Procurement and Construction (EPC) contractor for Maynilad Water Services Inc for sewage treatment plants with an aggregate capacity of at least 21,500 cubic meter per day.

Del Rosario noted ESTI’s track record includes designing and building more than 500 high performing wastewater treatment and water recovery plants in the Philippines.

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“ESTII has a leading market position in the Philippine wastewater industry and has a valuable client base comprised of major mall, office, commercial and residential property developers, hotels and resorts, hospitals and industrial facilities,” she said.

Only last May, MPIC formed a “strategic alliance” with the GT Capital Group and has made an initial investment in its power generator subsidiary Global Business Power Corp (GBP) for a 56 per cent ownership worth P22 billion, and two days later bought a 25 per cent stake in Beacon Electric Asset Holdings for P26.2 billion. Beacon Electric is a special purpose company owned 50-50 by telco giant PLDT, and MPIC.

MPIC’s last trading price decreased 0.15 per cent or P0.0100 to close at P6.49.

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