Billionaire Enrique Razon offered to buy the rest of Manila Water’s shares, seeking to consolidate his control, according to a stock exchange filing on Friday.
This, as the government renegotiated its contract in order to supply water to the capital’s east zone.
In a disclosure, Manila Water said that billionaire Enrique Razon’s Prime Metroline Holdings set the tender offer at PHP 13.00 per share. The port magnate on Tuesday got a 51% or majority voting interest after securing proxy rights from Ayala Corp.
The government was renegotiating its contracts with Maynilad Water Services Inc. and Manila Water after President Rodrigo Duterte tagged the concession agreements as “onerous.”
After President Rodrigo Duterte’s attack in 2019, Manila Water dropped a PHP 7.4-billion compensation claim over denied petitions for tariff hikes, which was awarded by a Singapore-based arbitration court. Also, the shares of Manila Water fell 9% after the tender offer was announced as the tender offer of PHP 13.00 per share was lower than the Manila Water closing price of PHP 14.96 per share.
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