Maynilad looms as potential white knight for Primewater
Maynilad Water Services Inc. is eyeing the Villar group’s troubled water utility business, potentially allowing it to expand its network beyond Metro Manila.
Speaking to reporters on Wednesday, Maynilad president Ramoncito Fernandez confirmed they were “looking at” PrimeWater Infrastructure Corp., whose customer base spans various provinces across Luzon.
He did not disclose other details.
In July, former Sen. Cynthia Villar said her husband, Manuel Villar, wanted to “dispose” of PrimeWater, saying they were “not earning much” from the company.
Villar—billionaire cited by Forbes magazine as the richest individual in the country—is a former senate president and House speaker.
PrimeWater currently provides water utility services for more than 1.7 million households in parts of Bulacan, Batangas, Laguna, Camarines Norte, Cabanatuan City and Sorsogon City.
Under its 25-year concession agreement with the government, Maynilad services the West Zone of the Greater Metro Manila area.
Eduardo Francisco, president of BDO Capital and Investment Corp., said investing in PrimeWater would be “strategic.”
“There’s interest because they’re really a dominant player, and they’re very extensive outside Metro Manila,” Francisco said. “They’re a good asset. The question that needs to be discussed is the valuation.”
PrimeWater was recently the subject of public scrutiny due to service lapses, with customers flagging prolonged water service interruptions. Some complained about dirty or murky water despite having to pay higher rates compared with PrimeWater’s counterparts.
President Marcos also called out local water districts and their joint venture partners in his State of the Nation Address for failing to meet the needs of more than six million consumers.
He said his administration would hold accountable “those who neglected and fell short of delivering on this vital public service.”
This development comes as Maynilad prepares for its upcoming initial public offering (IPO), which is seen to be the last local stock market debut for the year.
Maynilad plans to raise up to P34.33 billion from its IPO.
