Ayala Corp. is selling 8.19 percent of its economic interest in Manila Water which carries a 39.09 percent voting power to Enrique Razon.
Ayala said unit Philwater Holdings Company Inc. and Razon’s Trident Water Company Holdings Inc. signed the share purchase agreement for 2.69 billion preferred shares in Manila Water worth P4.84 billion.
Ayala said the transaction will be paid 50 percent upon closing and the rest upon call of Manila Water’s board of directors.
“The rights and title to the shares, except voting rights covered by the proxies, which shall be executed upon the execution of the Shareholders’ Agreement, shall not be transferred until all payments are made. Dividends earned by the preferred shares shall continue to be for the account of Philwater until full payment has been made,” Ayala said.
The transaction further entrenches Razon’s hold in Manila Water, who early last year bought into Manila Water for P10.7 billion, equivalent to a 25 percent ownership.
At the time, Ayala said it will grant Razon’s Trident Water proxy rights “to enable the latter to achieve 51 percent voting interest in Manila Water.”
Ayala through Philwater owns 4 billion preferred shares in Manila Water, representing 65.95 percent of voting shares in the company.