UAE's Utico submits binding offer to invest in Hyflux: CEO

Utico will provide working capital and any urgent interim funding to Hyflux as part of the offer.
Utico will provide working capital and any urgent interim funding to Hyflux as part of the offer. ST PHOTO: LIM YAOHUI

ABU DHABI (REUTERS) - Utility firm Utico has submitted a binding offer to invest $400 million in Singapore’s indebted water treatment firm Hyflux, the chief executive of the United Arab Emirates-based utility said on Sunday (May 12).

Utico would provide working capital and any urgent interim funding to Hyflux as part of the offer, Mr Richard Menezes said. 

Hyflux is now under a court-supervised restructuring process that could wipe out the holdings of tens of thousands of its retail investors. 

Mr Menezes told Reuters his firm would engage with Singapore’s water agency PUB and retail investors in Hyflux. 

“We submitted the binding term sheet last week. We are looking for the right deal that provides all stakeholders a satisfactory position in the company,” he said.  

Hyflux did not immediately respond to a request for comment outside business hours. 

Last Tuesday, the Singapore High Court prevented a group of banks from being carved out of Hyflux’s debt moratorium to file an application to have Hyflux placed under judicial management. 

The court also granted Hyflux a five-day extension on its debt moratorium, originally set for May 24. 

Hyflux said last Friday that it received another non-binding letter of intent for investment worth $500 million in the group from Oyster Bay Fund.