Utico says it has signed Hyflux deal

Utico had earlier agreed to take an 88 per cent stake in Hyflux through a $300 million equity injection and a $100 million shareholder loan, and is engaging with Hyflux's creditors to work out the details of the rescue plan.
Utico had earlier agreed to take an 88 per cent stake in Hyflux through a $300 million equity injection and a $100 million shareholder loan, and is engaging with Hyflux's creditors to work out the details of the rescue plan.PHOTO: ST FILE

United Arab Emirates-based utility provider Utico said it has "signed and released" a restructuring deal with water treatment firm Hyflux.

The deal, which Utico said is worth up to $535 million, will give it 88 per cent of the distressed firm. Utico added that with the support of Hyflux's board and management, "swift action" will be taken to bring projects up to speed and take on new projects.

But Hyflux yesterday declined to comment, saying that an announcement will be made with the Singapore Exchange. The Securities Investors Association Singapore said it has not seen any signed deal.

Some analysts are sceptical if the Utico deal, which is subject to creditors' approval, will go through.

This comes after a failed deal earlier this year with an Indonesian consortium formed by Salim Group and Medco Group.

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A version of this article appeared in the print edition of The Straits Times on August 28, 2019, with the headline 'Utico says it has signed Hyflux deal'. Print Edition | Subscribe