Ayala sells P5.7b worth of shares in Manila Water, keeps 22.5% stake

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Ayala sells P5.7b worth of shares in Manila Water, keeps 22.5% stake
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Conglomerate Ayala Corp. said Wednesday it will sell P5.7 billion worth of common and preferred shares in Manila Water Co Inc. now led by businessman Enrique Razon Jr.

Ayala said that after the transaction, it would retain an effective 23.5-percent voting stake and effective 22.5-percent economic stake in MWC. Ayala, which has been selling stake in non-core businesses, said it would use the proceeds to pare down debt and/or fund future investments. Meanwhile, the preferred shares were priced on a negotiated basis at P1.7165 apiece, considering the participation features of such shares to dividends to common shares on a 1/10 basis.MWC provides water treatment, water distribution, sewerage and sanitation services to more than seven million people in the east zone of Metro Manila.

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