Hyflux appoints new lead independent director

Mr Hong Pian Tee, who is the chairman and executive director of Pei Hwa Foundation, yesterday joined Hyflux's board and took over as its lead independent director.

Meanwhile, Mr Teo Kiang Kok has relinquished his position as lead independent director with immediate effect, although he continues to be a non-executive independent director of Hyflux.

Mr Teo is one of the directors under investigation over the troubled water treatment firm's Tuaspring project.

On June 2, the Singapore Police Force's Commercial Affairs Department, the Monetary Authority of Singapore, and the Accounting and Corporate Regulatory Authority said they had launched a joint probe into Hyflux's current and former directors for suspected false and misleading statements as well as breaches of disclosure rules.

Hyflux yesterday said Mr Hong, 75, is considered a non-executive independent director of the company.

Mr Hong's experience and areas of expertise since 1977 are in corporate advisory, financial reconstruction and corporate insolvencies. From 1985 to 1999, he was a partner of PricewaterhouseCoopers and the managing director of PricewaterhouseCoopers Intrust.

He has been a corporate or financial adviser to clients with businesses in Singapore and Indonesia. He was also engaged to restructure companies with operations in Taiwan, Indonesia and Malaysia, Hyflux said.

Mr Hong sits on the boards of three other Singapore-listed companies - as lead independent director of XMH Holdings and Sinarmas Land, and as an independent director of Yanlord Land group.

With his appointment, the water treatment firm's board now comprises eight members - Ms Olivia Lum, Mr Hong, Mr Teo, Mr Lee Joo Hai, Mr Gay Chee Cheong, Mr Christopher Murugasu, Mr Gary Kee and Mr Lau Wing Tat.

Besides Mr Teo, Mr Lee was also identified as one of the directors involved in the joint probe by the authorities.

This comes amid a rift between Hyflux and a key suitor over the terms of a rescue deal. The offer by Utico FZC for the water treatment company is nearing a final test of investor vote and court approval, and the Middle Eastern bidder expects that to come late June or in the first week of July, reported Bloomberg yesterday.

Utico had last Friday extended its deadline for a revised offer - paying all Hyflux investors in stock now instead of cash - to June 30 from June 4, saying it will give certainty to the deal.

These comments "are Utico's own" and do not represent Hyflux's views, the Singapore firm said in a filing later that day.

Utico expects the revised offer, which also seeks the immediate resignation of Hyflux's board if approved, to be passed by investors.

"We are more confident now that the proposal, the only one in court, will be approved by all the stakeholders," Utico managing director Richard Menezes told Bloomberg. "We don't see any reason for the court to reject the proposal once the investors approve it."

THE BUSINESS TIMES, BLOOMBERG