2 parties eyeing shares in Hyflux's main suitor Utico
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In the latest twist to the two-year-long Hyflux saga, the water treatment company's main suitor Utico said two interested parties are looking to acquire shares in the United Arab Emirates-based utilities group.
The potential buyers had approached Utico to become partners in relation to its proposed acquisition of Hyflux and to grow the Middle Eastern firm, it said in a press statement yesterday.
Utico did not disclose the size of the stake that may be acquired, but said the parties have interests in the Gulf Cooperation Council, the United Kingdom, Singapore and Indonesia.
It added that the share deal, if successful, could value the firm at up to US$1.5 billion (S$2.1 billion).
Utico said that even though it is "comfortable" about closing the transaction on its own now, it is studying the propositions, given that its rescue deal for Hyflux is pending and Utico's stock is not listed and trading publicly yet.
Meanwhile, Utico confirmed yesterday that it has extended the deadline for its revised $400 million rescue deal for Hyflux to June 30, provided that the Singapore water treatment firm does not extend its debt moratorium beyond July 30, among other conditions.
Utico's revised offer will see all Hyflux creditors accepting shares of Utico and Hyflux as payment, instead of cash as previously stated in the restructuring agreement signed last November.
The firm's liabilities stood at $2.95 billion as of March 31 last year.
Utico has also asked the Hyflux board to step down immediately if and when the debt restructuring scheme is approved.
The authorities said last week that they have launched a joint investigation into Hyflux and its current and former directors for suspected false and misleading statements and breaches of disclosure rules, as well as potential non-compliance with accounting standards.
On Thursday, the Singapore High Court heard that a group of seven bank creditors planned to file an application to appoint judicial managers over Hyflux to replace the present management.
The group applied to be carved out of Hyflux's debt moratorium.
Hyflux on Thursday said its next pre-trial conference is likely to be held on June 19 or 22, when further directions will be issued regarding its main reorganisation process and applications by any of the creditors.
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