A significant shift is underway in the Philippine water infrastructure landscape. Crystal Bridges Holdings Corp., spearheaded by Lucio L. Co, is poised to gain complete ownership of PrimeWater Infrastructure Corp., a company with a vast reach across the nation.
The agreement, finalized this week, will transfer 100% control of PrimeWater to Crystal Bridges, encompassing all of its existing operations throughout the Philippines. The financial details of this acquisition remain undisclosed, adding an air of intrigue to the deal.
PrimeWater currently provides a vital service to over 1.7 million households, delivering approximately 500 million liters of water daily. This extensive network spans more than 100 water districts, impacting communities across numerous provinces, including Bulacan, Batangas, and Laguna.
The company’s current ownership lies with Manuel Paolo A. Villar, the eldest son of prominent businessman Manuel B. Villar, Jr. This transfer marks a decisive move following a period of scrutiny and challenges for PrimeWater.
Previously, several major corporations, including Metro Pacific Investments Corp., had expressed interest in acquiring PrimeWater. This interest surfaced after Manuel B. Villar, Jr. publicly announced his intention to sell, citing political pressures and criticisms surrounding the company’s service quality.
The decision to sell followed a formal investigation launched by President Ferdinand R. Marcos, Jr., responding to consumer complaints regarding PrimeWater’s services. This investigation extended to a review of the company’s 73 joint venture agreements with local water districts by the Local Water Utilities Administration.
Industry analysts believe Lucio Co is well-positioned to succeed with this investment. His substantial resources and extensive network are expected to be instrumental in navigating the complexities of the water utility business.
This acquisition represents a significant diversification for Lucio Co, whose conglomerate, Cosco Capital, Inc., already holds a strong presence in diverse sectors like retail, real estate, liquor distribution, and oil and mining. It signals a bold expansion into a critical infrastructure segment.
