Thai giant chips in $90 million to buy Hanoi's surface water plant

WHA Utilities and Power Public Company Limited (WHAUP), a member of WHA Group, announced that it completed share transfer with Duong River Surface Water Plant Joint Stocks Company (SDWTP) through Do Tat Thang, an individual person in Vietnam.

It had bought nearly 34 million shares amounting to 34 per cent of total shares in Hanoi’s water supplier and the total value of transactions is VND2,073 billion (nearly $90 million).

The deal makes WHAUP become the second biggest shareholders of SDWTP, following Aqua One Water Corporation (41 per cent). The remaining three shareholders includes Saigon Fund Management Joint Stock Company (10 per cent), Hanoi Water Company Limited (10 per cent) and New Technology Application and Tourism Single Member Company Limited (5 per cent).

The investment marks another important step for WHAUP utilities business expansion in Cambodia, Laos, Myanmar and Vietnam, especially in Vietnam, as part of its long-term investment target.

Moreover, it is also in line with strategic plan to expand the utilities business outside WHA Group’s industrial estates.

WHA is currently developing 3,200ha-industrial park in Nghe An with an estimated investment of $1 billion.

Last September, Aqua One and WHAUP signed strategic cooperation agreement on the development of water plant over the next five years.

WHAUP on 28 March 2019 also acquired 47.31 per cent of total issued shares in Cua Lo Water Supply Joint Stock Company in Nghe An province and the total value of transaction is nearly VND23.5 billion.

As Thailand’s leader in fully integrated logistics and industrial facilities, the WHA Group has mapped out a business strategy to become the most desirable partner for companies that would like to start or expand their business in the country, or elsewhere in Southeast Asia.

The investment of WHAUP in Duong river surface water plant brings a huge opportunity while there will be no the groundwater plant in Vietnam within the next 1-2 decades and the natural monopoly in water supply field.

The water supply scope of the Duong river surface water plant covers the central urban area in the northeast of Hanoi (Long Bien district, Gia Lam district, part of Dong Anh), the southern area of Hanoi (part of Hai Ba Trung district and Hoang Mai district); Phu Xuyen urban area and adjacent rural areas.

This plant has just been put into operation recently, covering nearly 65 hectares in Phu Dong and Trung Mau communes, Gia Lam district with a total investment capital of VND5,000 billion in phase 1.