Philippine Billionaire Enrique Razon Consolidates Water Utility Assets In $671 Million Deal

Casino-to-ports billionaire Enrique Razon Jr.’s Prime Infrastructure is consolidating its water utility assets under Manila Water in a deal valued at 37.8 billion pesos ($671 million).

Manila Water is buying WawaJVCo, the developer and operator of the Wawa dam in Rizal province, about 30 kilometers east of Manila, Prime Infra, the key shareholder of both companies, said in a statement. That will boost the utility’s operating efficiency as it will now have access to two bulk water supply facilities, it added.

“The acquisition is financially accretive,” Manila Water, which services the eastern half of Metro Manila, said in is a separate statement, adding that this is “strategically aligned with its long-term operational and water security objectives.” WawaJVCo has a 30-year bulk water supply agreement to supply Manila Water 518 million liters per day.

Initial payment for the acquisitions will be made upon closing of the transaction on August 29, while the balance shall be paid in installments, to be agreed upon by both parties, Manila Water said.

With a real-time net worth of $12.9 billion, Razon is the second-richest Philippine tycoon. Besides infrastructure, he also has controlling interests in global port operator ICTSI and Bloomberry, which owns two casino resorts in Metro Manila.

Through Prime Infrastructure, Razon has been stepping up his investments in energy which includes his stake in the Malampaya gas field. Last month, it agreed to buy 60% of the gas assets of the Lopez family-backed First Gen for 50 billion pesos. In 2022, Prime Infra, which is also into power and waste management, postponed its IPO due to unfavorable market conditions.