September 28, 2022
  • September 28, 2022

Manila Water: Acquisition or sale of shares of another company

By on March 9, 2022 0






SAFETY AND EXCHANGES COMMISSIONSEC FORM 17-C

CURRENT ARTICLE 17 REPORT
OF THE SECURITIES REGULATORY CODE
AND CBC RULE 17.2(c)

1. Report Date (Date of first reported event) March 9, 20222. SEC Identification Number A1996-115933. BIR tax identification number 005-038-428-0004. Exact name of the issuer as specified in its charter MANILA WATER COMPANY, INC.5. Province, country or other jurisdiction of incorporation QUEZON CITY, PHILIPPINES6. Industry classification code (SEC use only) 7. Principal office address MWSS ADMINISTRATION BUILDING 489 KATIPUNAN ROAD BALARA QUEZON CITYPostal code11058. Issuer’s phone number including area code (632) 7917 5900 loc. 14049. Former name or address, if changed since last report N / A10. Securities registered pursuant to Articles 8 and 12 of the SRC or Articles 4 and 8 of the RSA

Title of each class

Number of Common Shares Outstanding and Amount of Outstanding Debt

COMMON 2,884,839,617
PREFER 4,000,000,000

11. Indicate the article numbers reported here

The Exchange does not warrant or assume any responsibility for the accuracy of the facts and statements contained in any corporate disclosures, including financial reports. All data contained herein is prepared and submitted by the Disclosing Party to the Exchange, and is being released for informational purposes only. Any questions about the data contained herein should be addressed directly to the disclosing party’s Corporate Information Officer.


Manila Water Company, Inc.CMM

Disclosure Form PSE 4-2 – Acquisition/Disposal of Shares of Another Company
References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Purpose of disclosure

Acquisition by Manila Water Philippine Ventures, Inc. of all iWater, Inc. shares in Davao Del Norte Water Infrastructure Company, Inc.

Background/Description of Disclosure

Please note that Manila Water Philippine Ventures, Inc. (“MWPV”), a wholly owned subsidiary of Manila Water Company, Inc. (“MWC”), has acquired all of the shares of iWater, Inc. (“iWater”) en Davao Del Norte Water Infrastructure Company, Inc. (“Davao Water”). Prior to the acquisition, MWPV held 51% while iWater held a 49% stake in Davao Water. After the acquisition, MWPV will own 100% of Davao Water. After the acquisition, MWPV will own 100% of Davao Water.

Davao Water is the joint venture partner of Tagum Water District in implementing a bulk water supply and purchase project, which is being carried out by their joint venture, Tagum Water Company, Inc.

Thank you.

Date approved by
board of directors

N / A

Rationale for the transaction, including the benefits expected to be accrued by the issuer as a result of the transaction

The transaction is in line with the company’s strategic direction to maximize the business potential of existing businesses and seize opportunities for growth and expansion in the Visayas and Mindanao.

This acquisition was approved by MWPV’s Board of Directors on February 24, 2022.

Details of acquisition or disposition

Manner

MWPV and iWater have signed a stock purchase agreement for the sale of 735,000 shares of Davao del Norte Water Infrastructure Company, Inc.

Description of the business to be acquired or sold

Davao Water is the joint venture partner of Tagum Water District in implementing a bulk water supply and purchase project, which is being carried out by their joint venture, Tagum Water Company, Inc.

The terms and conditions of the transaction

Number of shares to be acquired or sold

735,000

Percentage of total outstanding shares of the company being traded

49

Price per share

469.84

Nature and amount of consideration given or received

The purchase price for the acquisition is PhP345,333,333.33.

Principle followed to determine the amount of consideration

Generally accepted valuation methods (eg discounted cash flows) were followed to determine the acquisition price.

Payment terms

The purchase price of PhP345,333,333.33 was paid in full by wire transfer by MWPV upon signing of the share purchase agreement.

Conditions precedent to closing the transaction, if any

1. Completion and satisfactory outcome of the due diligence audit conducted by MWPV;
2. iWater’s representations and warranties shall be true and correct in all material respects;
3. All consents, waivers and approvals required for the sale and purchase of shares must have been obtained or waived;
4. iWater, unless expressly waived by MWPV, will have performed and complied with all terms, covenants and conditions to be performed or complied with by it;
5. No governmental investigation or suit, action or other proceeding shall have been threatened or commenced which challenges the transaction, or any material part thereof, contemplated by the Share Purchase Agreement;
6. Signature of a deed of absolute sale of shares;
7. Delivery of original share certificates duly endorsed covering the shares free and clear of any lien;
8. Delivery of the original duly signed irrevocable power of attorney (associated with an interest) in favor of MWPV;
9. Submission of original irrevocable and unconditional letters of resignation by iWater appointed directors;
10. Delivery of a written instruction to Davao Water to deliver to MWPV any dividends that may be due on the shares;
11. Delivery of the nominee agreement duly signed by and between iWater and its nominee directors and the written notice of termination thereof sent by iWater; and
12. Payment of the purchase price by bank transfer to the Bizlink-Pesonet account of the iWater Bank of the Philippine Islands.

Any other salient term

All of iWater’s rights as a shareholder of Davao Water and all rights under the Development Agreement, the Joint Venture Agreement, including the iWater Premium, will automatically terminate upon Closing.

Identity of the person(s) from whom the shares were acquired or to whom they were sold

name

Nature of any material relationship with the issuer, its directors/officers or any of its affiliates

iWater, Inc. N / A

Effect(s) on the Issuer’s business, financial position and operations, if any

Full ownership of Davao Water enables the company to maximize returns from the project through its efficient execution and operation of the project.

Operationally, iWater will no longer be part of the management and operations of Davao Water. The transaction will have no effect on the execution of the project and the operation of the project assets. Ultimately, the project retains its projected benefits to provide customers in Tagum Water District.

Other relevant information

Filed on behalf of:

name

Romelyn Bond

Designation

Senior Corporate Counsel

Warning

Manila Water Company Inc. published this content on March 09, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on March 09, 2022 08:20:05 UTC.

Public now 2022

All the news of MANILA WATER COMPANY, INC.

2022 sales 22,609 million
432M
432M
Net income 2022 5,575 million
107M
107M
Net debt 2022 55,255 million
1,057 million
1,057 million
PER 2022 ratio 10.9x
2022 return 2.71%
Capitalization 61,633M
1,179 million
1,179 million
EV / Sales 2022 5.17x
EV / Sales 2023 4.90x
# of employees 1,578
Floating 15.4%

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Trends Technical Analysis MANILA WATER COMPANY, INC.

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Evolution of the income statement

To sell

To buy

Medium consensus TO BUY
Number of analysts 2
Last closing price

PHP18.98

Average target price

PHP35.82

Average Spread / Target 88.7%