MANILA, June 30 (Reuters) - Philippine holding firm Metro Pacific Investments Corp (MPI.PS) said on Monday it would raise its stake in a water utility firm by buying shares worth $197 million from its parent First Pacific Co (0142.HK) and Ashmore Funds.
Metro Pacific will also increase its authorised capital stock to 12 billion pesos ($267 million) from 4.6 billion pesos now for its future fund raising plans and to create preferred shares that would allow foreign investors to buy into the firm, the company said in a statement.
The increased capital stock would be divided into 11.95 billion common shares with a par value of 1 peso each and 5 billion preferred shares with a par value of one centavo each. The plans were approved by shareholders on Monday.
'Today, we passed resolutions that will allow more and increased local and foreign investment in your company, enabling us to maintain the pace of investment in existing and new businesses,' Metro Pacific Chairman Manuel Pangilinan said in a statement.
The company said it was 'actively but carefully' considering new ventures in infrastructure, healthcare, agriculture and mining.
Aside from its water utility business, Metro Pacific has interests in property and leisure development and in healthcare.
Metro Pacific said it would enter into agreements with certain funds managed by Ashmore Investment Management and a unit of First Pacific Co for the acquisition of their interests in a consortium that has an 84 percent interest in Maynilad Water Services Inc.
Lyonnaise Asia Water Limited, a unit of French utility Suez (LYOE.PA), holds the remaining 16 percent stake in Maynilad Water -- the provider of water, sanitation and sewerage services to about 6 million people in Manila's western areas.
The acquisitions, involving a combined 34.4 percent stake in the consortium, would bring Metro Pacific's stake to 55 percent in the consortium, equivalent to a 51 percent majority stake in Maynilad Water.
The rest of the shares in the consortium are held by holding firm DM Consunji Inc (DMCI) (DMC.PS).
Maynilad Water exited from a court-administered rehabilitation in February, repaying total outstanding debts of $232 million to local and foreign banks.
(Reporting by Rosemarie Francisco) zr/zr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Metro Pacific will also increase its authorised capital stock to 12 billion pesos ($267 million) from 4.6 billion pesos now for its future fund raising plans and to create preferred shares that would allow foreign investors to buy into the firm, the company said in a statement.
The increased capital stock would be divided into 11.95 billion common shares with a par value of 1 peso each and 5 billion preferred shares with a par value of one centavo each. The plans were approved by shareholders on Monday.
'Today, we passed resolutions that will allow more and increased local and foreign investment in your company, enabling us to maintain the pace of investment in existing and new businesses,' Metro Pacific Chairman Manuel Pangilinan said in a statement.
The company said it was 'actively but carefully' considering new ventures in infrastructure, healthcare, agriculture and mining.
Aside from its water utility business, Metro Pacific has interests in property and leisure development and in healthcare.
Metro Pacific said it would enter into agreements with certain funds managed by Ashmore Investment Management and a unit of First Pacific Co for the acquisition of their interests in a consortium that has an 84 percent interest in Maynilad Water Services Inc.
Lyonnaise Asia Water Limited, a unit of French utility Suez (LYOE.PA), holds the remaining 16 percent stake in Maynilad Water -- the provider of water, sanitation and sewerage services to about 6 million people in Manila's western areas.
The acquisitions, involving a combined 34.4 percent stake in the consortium, would bring Metro Pacific's stake to 55 percent in the consortium, equivalent to a 51 percent majority stake in Maynilad Water.
The rest of the shares in the consortium are held by holding firm DM Consunji Inc (DMCI) (DMC.PS).
Maynilad Water exited from a court-administered rehabilitation in February, repaying total outstanding debts of $232 million to local and foreign banks.
(Reporting by Rosemarie Francisco) zr/zr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
