DMCI Holdings Inc., the investment company of the Consunji family, sold a 10-percent interest in Subic Water and Sewerage Company to the local government of Olongapo for P210.58 million.
DMCI said in a disclosure to the stock exchange wholly-owned subsidiary DMCI Project Developers Inc. sold 915,580 shares in Subic Water, the operator of the water and sewerage systems in Olongapo City and Subic Bay Freeport.
The shares represent 10 percent of the outstanding capital stock of Subic Water.
DMCI-PDI said it would still own 30 percent of Subic Water’s outstanding capital stock, after the sale.
Subic Water is a consortium of DMCI, Singaporean water utility specialist Sembcorp Industries Ltd., Subic Bay Metropolitan Authority and Maynilad Water Services Inc.
Subic Water has exclusive right and privilege to operate, maintain and improve the water and sewerage systems of Olongapo City and Subic Bay Freeport under a 30-year franchise term.
The water utility firm is considered Southeast Asia’s pioneer company which introduced the first public-private partnership and build-operate-and transfer model in the water and wastewater services industry.
The company was formed in the 1990s in the wake of an impending water crisis in Olongapo City and the growing commercial water requirements of Subic Bay Freeport Zone.
The customer base of Subic Water doubled from 20,000 connections in 1997 to more than 40,000 accounts today.
From ten million liters a day, Subic Water now produces up to 42 MLD of high-quality water.
DMCI also owns a 25.24-percent interest in Maynilad, the water concessionaire for the west zone of Metro Manila.
Aside from water utility, DMCI also has investments in coal mining, power generation real estate, infrastructure and construction.