Manila Water, chaired by Enrique Razon Jr, has offloaded its stake in Thailand’s Eastern Water Resources, as it focuses on its core markets. Meanwhile, Razon’s new gaming app has encountered a delay after regulatory concerns appeared to throttle its launch. These actions indicate the overall business strategy of the business group is changing.
Manila Water’s Exit from Thai Utility
Manila Water has finally left Thailand, as it sold out its 18.72% stake in Eastern Water Resources for some P1.1 billion. The buyer is one Mr.Bhavin Kunaderekwong, who was a former director and CEO of Viserve. This marks one of the fastest market exits in recent history of the water supply business, as Manila Water only took up this stake seven years ago. Eastern Water is a major water supplier in the area.
Strategic Rationale for the Sale
The new strategy of Manila Water is to cut down investments and move towards those that generate more value. The company says the sale allows it to concentrate on assets where it has day-to-day operational control, and where it can create long-term value. Whatever money is made from this sale will be used to fund its initiatives in the Philippines, Vietnam, Indonesia and Saudi Arabia. The shift indicates a greater emphasis on core and strategic regions.
Regulatory Hurdles for Razon’s Gaming Venture
In other news, Razon’s new gaming app launch is on ice. The introduction is slowed down by regulations and a lengthy approval procedure. As these unavoidable obstacles delay the processes, the company is yet to announce a new timeline for the rollout of the service. They say the uncertainty is due to ongoing compliance checks with gaming authorities, but they hope it will be fixed soon.
Razon’s Broader Investment and Diversification Strategy
While exiting Thailand and waiting for the gaming app launch might be seen as losses, it shows how Razon is restructuring its portfolio. The company is channeling capital away from foreign utilities and into domestic markets alongside digital investments. It is also a reflection of the push towards value creation and efficiencies led by setting strict sector rules.
Industry Impact and Market Reactions
Market analysts consider this a growing trend among Philippine conglomerates. They are rebalancing portfolios, disposing of non-core overseas assets and experimenting in digital sectors.
Some also argue that it makes strategic sense to focus on markets with greater control and less regulatory risk. This is not surprising, with shifting international regulations making headlines across the globe, especially concerning non-domestic investors. The sale and stuttering opening of the app also underscore the challenges of building new digital ventures that operate in disciplined markets.
Our Take
Razon is doing its best to batten the hatches by letting go of non-core foreign assets while clashing with stern regulation at home. The sale will provide Manila Water with additional capital to expand in key markets.
The fate of Razon’s gaming business will be decided in part by how fast it can get through regulatory checks. For the time being, the focus is still value, control and adapting to a volatile business that’s in a state of constant change.
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