Billionaire Enrique Razon Jr. has taken control of Manila water from Ayala Corp.– The oldest conglomerate in the Philippines – as the port and gaming mogul expands its investments in infrastructure projects.
Razon was named president, president and CEO of Manila Water on June 3 after Trident Water, a subsidiary of Razon’s Prime Strategic Holdings, completed its initial investment of 10.7 billion pesos ($ 224.4 million) in the water utility company, Manila Water said in a statement Friday. filing on the Philippine Stock Exchange.
Upon completion of its investment, Trident will have a 51% voting stake in Manila Water, while Ayala Corp. will retain a 31.6% voting stake, according to the filing. Fernando Zobel de Ayala and his older brother Jaime Augusto Zobel de Ayala stepped down as president and vice president of Manila Water, respectively.
Trident signed an initial agreement in February 2020 to purchase 820 million common shares of Manila Water for 13 pesos each. A year later, the company agreed to buy an additional 2.7 billion preferred shares in Manila Water from Philwater Holdings of Ayala Corp. for 4.8 billion pesos. Pending full payment of the preferred shares, payable in five years, Philwater has assigned Trident its proxy votes.
Manila Water delivers more than 1.3 billion liters of water a day to 6.8 million residents of eastern Metro Manila, including parts of the Philippine capital of Manila, Quezon City, Makati, Mandaluyong, Pasig and Rizal province, according to your website. The company registered a net profit of 4,500 million pesos in 2020, 18% less than the previous year.
Razon has been stepping up its investments in infrastructure projects in recent years through its Prime Strategic holding, which is developing water and power generation projects in the Philippines.
In partnership with San Lorenzo Luis Builders, Prime Metroline Infrastructure of Prime Strategic is building the Wawa Bulk Water Supply project at a cost of 24.5 billion pesos. When completed in late 2025, the project will supply more than 500 million liters of water per day to more than 500,000 households in Manila Water’s concession areas, according to the Prime Strategic website.
Aside from his investments in infrastructure, Razon, 61, is the majority shareholder of port operator International Container Terminal Services Inc. He was ranked the second richest person in the Philippines with a net worth of $ 5 billion when the List was published. of billionaires in the world in April. .
Razon’s grandfather started the port business in Manila in 1916 and his father rebuilt it after World War II. Razon grew the business globally by establishing a presence in ports in Asia, the Middle East, Africa, Europe and Latin America. In 1999, he founded Bloomberry Resorts, which owns the Solaire casino resort in Manila.