ABOITIZ EQUITY Ventures, Inc. has transferred all its water investments to its infrastructure unit Aboitiz InfraCapital, Inc., (AIC) as part of efforts to expand its presence in the sector.
In a disclosure to the stock exchange, the Aboitiz-led holding firm said AIC secured a minority stake in Balibago Waterworks System, Inc. (BWSI) in Pampanga and acquired LiMA Water Corp. (LWC) in Batangas.
“These acquisitions will enable AIC to establish its position as a provider of water and wastewater-related services to residential, commercial and industrial customers. These steps are key for AIC to achieve its goal of building franchises across the entire water value chain,” AEV President and CEO Erramon I. Aboitiz was quoted in the statement as saying.
AIC spent about P275 million to secure on Aug. 3 an 11.14% interest in BWSI previously held by San Fernando Electric Light & Power Co.
BWSI provides running water to over 150,000 households in its franchise areas. After 54 years in public service, the National Water Resources Board currently considers BWSI the largest and most efficiently operated provincial privately owned waterworks system in the country.
Through AIC’s investment in BWSI, AIC will partner with an established market player in the water sector operating over 50 water distribution franchise areas throughout the country.
On Aug. 1, AIC purchased LWC from affiliate Aboitiz Land, Inc., the land business unit of the Aboitiz Group and took full operational control of LWC on the same day.
LWC provides industrial and potable water with a daily capacity of 8,700 cubic meters and a full capacity of 40,000 cubic meters from its own deep well sources and reservoirs, and ensures the 24-hour availability and sufficiency of water supply.
The Aboitiz Group entered the infrastructure space through Apo Agua Infrastructura, Inc., a bulk water project that will provide Davao City with 300 million liters per day.
Apo Agua, a joint venture between AEV and J.V. Angeles Construction Corporation, had previously signed an agreement with the Davao City Water District to build one of the country’s largest private bulk water supply projects.
Apart from infrastructure, the Aboitiz Group has interests in power, financial services, real estate and food.
Shares in AEV were unchanged at P72.50 each on Thursday. — Krista Angela M. Montealegre
