UU sells stake in Manila Water

12th Nov 2009 07:29

Utility company United Utilities is to raise $73m in cash by selling off its stake in the Manila Water Company (MWC).United Utilities (UU) has an 11.67% shareholding in the Filipino utility company, which it is selling to diversified conglomerate Ayala Corporation, and to UU associate company Philwater Holdings.Both of the buyers are existing shareholders in MWC.The deal is expected to complete by the end of this year.At completion of the deal United Utilities has committed to reinvest around $1.2m in new preference shares to be issued by Philwater Holdings, a company in which UU has a 40% stake.United Utilities will continue to provide technical support to Manila Water.