Manila Water Co. agreed to acquire Suez Environnement Co.’s 51 percent stake in PT PAM Lyonnaise Jaya, which holds the concession contract for western Jakarta.
No terms were given by the utility, which supplies water to half of the Philippine capital. Closing of the deal is subject to certain government and regulatory approvals in Indonesia and other conditions, Manila Water said today in a filing with the Philippine Stock Exchange.
PAM Lyonnaise has been serving western Jakarta since 1997 under a 25-year agreement with PAM Jaya, a government entity owned by the province of Jakarta. The company has a total water supply of more than 700 million liters (185 million gallons) a day and 5,300 kilometers (3,300 miles) of pipe network, according to Manila Water’s filing.
Suez, Paris-based, is the second-largest water company.
Manila Water shares slipped 0.4 percent to 28.40 pesos, its fifth straight day of declines, the longest losing stretch since May 16. The stock has risen 46 percent this year.