Hyflux announces third potential investor, with non-binding offer for its overseas assets

Hyflux, in a Singapore Exchange announcement, said the investor is one of the top 10 largest desalination companies globally.
Hyflux, in a Singapore Exchange announcement, said the investor is one of the top 10 largest desalination companies globally.PHOTO: ST FILE

SINGAPORE - A third potential investor has shown interest in embattled water treatment firm Hyflux, with another non-binding letter of intent, in this case to acquire its assets in Algeria and Oman, as well as those in the Middle East and North Africa.

The investor, whose identity was not revealed, also expressed interest in the operation and maintenance of those assets, in the hope of growing its own portfolio of desalination plants.

Hyflux, in a Singapore Exchange announcement on Wednesday afternoon (May 15), said the investor is one of the top 10 largest desalination companies globally.

It described the investor as a subsidiary of one of the world's leading infrastructure companies, with expertise in transport and greenfield infrastructure. The investor is a specialist in the engineering, construction, operation and maintenance of water treatment facilities, in particular water desalination plants, with a focus on build-own-operate-transfer, management of concessions and related services, Hyflux said.

The proposed deal is subject to regulatory clearance, due diligence and the execution of a binding agreement, with terms to be mutually agreed.

Hyflux said the investor is "conscious of the timeline and has indicated that it would be willing to devote all necessary resources to ensure that the due diligence process and the consummation of the deal is carried out in the shortest possible time frame."

While Hyflux will consider all serious offers and expressions of interest received, the priority remains for a strategic investor for the group, it said.

 

Hyflux is also engaged in active discussions with United Arab Emirates utility Utico and Mauritius-based multi-strategy investment fund Oyster Bay Fund. Utico has offered to invest $400 million in Hyflux, while Hyflux said it "envisions" an investment of up to $500 million by Oyster Bay.