Investors eye Prime Water

EYES WIDE OPEN

- IRIS GONZALES

Investors are quietly eyeing to buy out Villar-owned Prime Water in existing joint ventures the company has with local water districts. Initial talks have started, say my sources, and may soon move to formal negotiations which would include valuation, due diligence and, if both parties agree, an eventual buyout.

No less than former senator Cynthia Villar, the wife of tycoon and Villar Group chairman Manuel Villar, said her husband wants to "dispose of" the water service provider, which in recent years has become the subject of consumer complaints.

I heard that one group is initially eyeing at least 10 out of the roughly more than 100 locations where Prime Water is present. Others want to vie for more. These potential investors are water utility companies that are already present in some areas and have a track record in running a water business.

I can imagine that the bigger names in the industry may also be eyeing some Prime Water locations. I wouldn't be surprised if others in the water business, including the Razon and the MVP groups, may also be interested in taking over PrimeWater's locations if the Villars, indeed, decide to sell.

According to its website, PrimeWater's services include water system development and construction, bulk water supply, water supply improvement and rehabilitation and septage management.

Its coverage is practically across the entire Philippines — from Cagayan Province in the north, Zamboanga City in the south and many provinces in between.