Philippine tycoon Villar to sell troubled water utility amid scrutiny
The deal involves the entire portfolio of PrimeWater
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[MANILA] The Philippines’ second-richest man is selling his water utility firm to a fellow tycoon, exiting a business weighed down by regulatory scrutiny and customer complaints.
In a statement, the group of Manuel Villar said Crystal Bridges Holding of grocery tycoon Lucio Co entered into definitive agreements for the acquisition of 100 per cent of PrimeWater Infrastructure. No financial details were disclosed.
Property and retail tycoon Villar has seen his fortunes tumble this year due to a slump in the share prices of his real estate holding firm and other businesses. He has lost US$12.6 billion in net worth and was knocked off the top spot in the Philippines’ richest list, according to data compiled by Bloomberg.
The deal involves the entire portfolio of PrimeWater, which operates water and wastewater infrastructure projects across the country as well as bulk water supply and septage and wastewater management services, Villar’s group said.
The transaction relieves Villar of a “politically sensitive business and provides some cash that can support his remaining core companies,” said Juan Paolo Colet, managing director at Chinabank Capital Corp.
For Co, the acquisition is a bold diversification but he has the “resources and relationships to make this investment work,” Colet said. Co has built a fortune through his grocery chain Puregold and alcoholic drinks importing business.
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In July, the government investigated possible “irregularities” in PrimeWater’s operations, with termination as among the options to address consumer complaints over supply shortage.
Philippine President Ferdinand Marcos Jr has said his government will hold accountable erring water companies after more than six million consumers were affected by inadequate supply. BLOOMBERG
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