Manila Water acquires stake in Sai Gon Water

Manila Water South Asia Holdings (MWSAH) has acquired 31.47% of outstanding capital stock in Vietnam-based Sai Gon Water Infrastructure.

Manila Water reported that it has purchased 18,370,000 primary shares of Sai Gon Water at a price of VND16,900 ($0.80) per share.

Manila Water said that the transaction is in line with its investment strategy in Vietnam and Asia. After it failed to acquire Indonesian water service concessionaire PT PAM Lyonnaise Jaya (Palyja) in July, it signed an investment agreement with Sai Gon Water for the proposed acquisition in August.

By constructing water and wastewater treatment plants and providing engineering, operation and management services and other activities, the company aims to become the first fully integrated company in the Vietnam water and wastewater infrastructure sector.

In 2011, Sai Gon Water decided to limit its focus to environmental infrastructure development with a view to tap revenue-guaranteed projects.