MPIC buys 49 per cent of Tuan Loc

14-Jun-2018 Intellasia | VIR | 6:02 AM Print This Post

Metro Pacific Investment Corp. (MPIC) completed the acquisition of a 49 per cent stake in Tuan Loc Water Resources Investment JSC for VND865.6 billion ($37.9 million).

According to newswire Thestandard, MPIC said in a disclosure to the stock exchange wholly-owned unit MetroPac Water Investments Corp. finished the purchase of 37.926 million shares, equalling 49 per cent stake in Tuan Loc Water Resources JSC, a subsidiary of Tuan Loc Corporation.

The transaction allows MPIC to take existing advantages of Tuan Loc to enter and expand into the Vietnamese water market.

Tuan Loc has been installing water supply systems in numerous large-scale projects across the nation. It currently has a charter capital of VND1.6 trillion ($70.24 million).

Recently, Tuan Loc, in collaboration with two other domestic investors, was assigned to develop Thu Thiem 3 Bridge, located in District 4, under the build-transfer (BT) format.

The biggest project of Tuan Loc is Song Lam Raw Water Treatment Plant, a 50-year build-own-operate project (2015-2064) with an installed capacity of 200 million litres per day (MLD) expandable to 300 MLD. This plant supplies raw water to Nghe An Water Supply JSC and surrounding industrial parks.

Earlier in last November, MPIC signed an share purchase agreement to buy 45 per cent or 9.9 million shares of the outstanding capital stock of BOO Phu Ninh Water Treatment Plant JSC, which holds a license to serve clean water demand in the Chu Lai Open Economic Zone, and urban areas, industrial zones and adjacent rural areas in Quang Nam province.

MPIC said the deal was “subject to price adjustment through an escrow mechanism depending on the fulfillment of certain conditions.”

However, the two parties have yet to publish the information whether the deal is finished or not so far.

MPIC is an investment holding company led by businessperson Manuel V. Pangilinan whose businesses include water, energy, telecommunications, infrastructure, hospitals, tollways, railways, and logistics, among others.


Category: Stocks, Vietnam

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