MANILA, Dec 17 (Reuters) - Shares in Manila Water Co Inc
MWC.PS tumbled 39% to a 14-year low on Tuesday, even as the
Philippine utility firm sought to ease investor concerns over
its concession deals following legal disputes with the
government.
The Philippines' water regulators said last week it has
cancelled the 15-year extension of concession deals it signed
with Manila Water and unlisted Maynilad Water, the country's two
largest utilities, after pressure from President Rodrigo
Duterte. The firebrand leader described the concession agreements as
"onerous and disadvantageous" to the public, after the two firms
won arbitration cases in Singapore, which ordered the Philippine
government to pay the utilities a combined $212 million in
compensation.
Water regulators said on Tuesday the government plans to
form a new concession deal and also revise its penalty system, a
day after Manila Water said it was willing to negotiate with the
government and find a mutually acceptable solution.
"We... want to improve the mechanism for fines and
penalties. All of these are to further protect the interest of
the public," Patrick Ty, chief regulator of the Metropolitan
Waterworks and Sewerage System, told Reuters.
Shares in Manila Water, which serves seven million customers
mainly in the capital, slumped as much as 39% on Tuesday to
their lowest in more than 14 years.
It has dropped by nearly 70% in two weeks, losing $450
million in market value, since Duterte ordered the filing of
criminal charges against the water utilities and their
billionaire owners on Dec. 4.
Shares in conglomerate Ayala Corp AC.PS , which owns Manila
Water, dropped 1.9% to a near three-year low, widening its
2-week loss to $1.14 billion.
DMCI Holdings Inc DMC.PS and Metro Pacific Investments
Corp MPI.PS , both shareholders of Maynilad, also lost around
$150 million and $420 million in their market value,
respectively, in the same period.
The companies had said they would forfeit any damage claims
to avoid angering the president who enjoys high public approval
ratings, thanks to his man-of-the-people style.
($1 = 50.91 Philippine pesos)