Water treatment firm Hyflux is shedding two partnerships with Marmon Water as it slims down to focus on its core business.
The company said it will sell its 50 per cent interest in Hyflux Marmon Development to Marmon Water Singapore (MWS), an affiliate of Marmon Water, for a total cash consideration of US$43.4 million ($55.1 million).
Marmon Water holds the other 50 per cent equity interest in Hyflux Marmon Development.
The joint venture firm is primarily engaged in research and development work on water treatment technologies, with a focus on combined membrane and media filtration.
Hyflux said such technologies "are non-integral to Hyflux's realigned product focus and existing suite of consumer products",
"Going forward, Hyflux will continue to expand and develop integral membrane technology for applications across industries including industrial and municipal markets," it said in an announcement to the Singapore Exchange on Tuesday.
Hyflux is also selling its 49 per cent stake in Marmon Hyflux Investments to MWS for US$6.7 million, excluding a dividend of some US$3.1 million.
MWS holds the other 51 per cent interest in Marmon Hyflux Investments, which does sales and marketing activities.
Hyflux said it has been a passive investor in Marmon Hyflux Investments and the divestment is part of its ongoing rationalisation of partnerships.
With the divestment of Hyflux Marmon Development, the net tangible assets per share will rise from 5.8 cents as of Dec 31 to 12.3 cents, while earnings per share will increase from 2.4 cents to 8.9 cents.
It added that it will use the sale proceeds for strategic investments and working capital purposes.
Hyflux shares gained 1.5 cents to $1.235 as of 10.52am on Tuesday.