Ayala Group’s Offloading Investment in Manila Water Company, Inc.

The Executive Committee of Ayala Corporation (Ayala) and its wholly-owned subsidiary, Michigan Holdings, Inc. (Michigan) executed with Trident Water Company Holdings, Inc. (Trident) the underlying agreements for the special block sales covering Ayala’s and Michigan’s 577,997,467 Manila Water Company (MWC) common shares.

Philwater Holdings Company, Inc. (Philwater), another wholly-owned subsidiary of AC, and Trident will also be executing a Deed of Absolute Sale for the sale of Philwater’s 872,487,863 MWC preferred shares.

The gross consideration for these transactions among AC, Michigan, and Philwater (collectively, Ayala), and Trident will be  P14.5 billion.

​Post-completion of these transactions, Ayala will no long hold common shares of MWC and its voting stake will be nil (0%) as a result of the block sale and voting proxy to be issued in favor of Trident vis-à-vis the participating preferred shares. However, Ayala will retain an effective 12.08% economic stake through the preferred shares which will be paid on an installment basis. Once the preferred shares have been fully paid for in 2029, Ayala’s economic stake in MWC will drop to zero.

The transactions are aligned with AC’s strategy to rationalize its portfolio and raise P50 billion in proceeds. With these transactions, the total proceeds raised from AC’s portfolio rationalization initiatives will be  P51.5 billion.

The proceeds will be used to pare down debt and/or fund future investments.

Ayala Corporation’s and Michigan’s special block sales of common shares in MWC will be through the Philippine Stock Exchange while Philwater’s sale of participating preferred shares in MWC, to Trident Water Company Holdings, Inc. will be done through the execution of a Deed of Absolute Sale.