In its continued search for potential investors, Hyflux confirmed in a statement that it had a recent meeting with Utico but that the meeting did not involve any decisive arrangements or binding agreements nor was there mention of any conclusive monetary figures on how much its investors will be getting.
Hyflux’s rejoinder came after a weekend statement from Utico.
In its weekend statement, the UAE utility firm said it had met with Hyflux’s financial and legal consultants alongside the Securities Investors Association Singapore last week, and had proposed a “part cash redemption” to the 34,000 retail investors of Hyflux’s perpetual securities and preference shares.
In response, Hyflux, which is in a hurry to obtain new funds, made it clear that the meeting with Utico was focused “on high-level views which entailed no conclusive numbers or percentages, or indeed any binding agreement, whether in respect of the (perpetual securities and preference shareholders) or any other stakeholder groups.”
The financially-drained water treatment firm added: “Further, the company and its advisors understand that the statements … are exploratory in nature and are approaches currently contemplated by Utico.”
Hyflux likewise confirmed that it is still conducting exploratory talks with several potential investors.
Apart from Utico, it has previously disclosed global multi-strategy investment fund Oyster Bay Fund and an unidentified desalination entity as among its possible partners.
Earlier this month, Hyflux issued an elucidation to Utico after the latter said it had submitted a binding investment offer. Hyflux said all it had was a “draft term sheet.”
Referring to that “sheet,” Hyflux stressed that it “had not accepted or entered into the term sheet received” from Utico.
“This position has not changed,” it added.
Hyflux’s court-sanctioned debt moratorium, which has already been extended thrice, will end on Wednesday.