International Business & Economy white knight to buy 88% stake for S$535 million

Hyflux white knight Utico to buy 88% stake for S$535 million

Utico says that Hyflux’s valuation is at S$340 million. However, the total value of the deal could be S$535 million




- Advertisement -

Singapore—Middle Eastern utility company will buy an 88 percent stake in beleaguered water treatment firm , for the amount of S$535 million.

This was announced via a statement from Utico on July 16, Tuesday.

Utico said that the agreement is subject to several regulatory approvals, and also the approval from creditors, the court, investors and the Singapore Stock Exchange.

The statement also said that Hyflux will continue to be a company that’s separately listed.

- Advertisement -

Utico says that Hyflux’s valuation is at S$340 million. However, the total value of the deal could be S$535 million, an amount that is slightly higher than the deal that Hyflux had earlier struck with would be white knight SM Investments, which did not go through.

According to the managing director of Utico, Richard Menezes, “The aim is to save time and move expeditiously as both Utico and Hyflux, investors and creditors are aware of the fact that time is of essence in preserving the value of the Singaporean company and arrest further slide.”

Utico also bared its plan of offering the cash equivalent of a 4 percent stake in the enlarged Utico group, along with additional cash payouts, which should give the perpetual securities and preference (PNP) shareholders of the water treatment company “50 percent of their first S$2,000 to S$3,000 as well as a cascade and staggered deal to the rest, thus offering them options to exit and hope for full redemption,” Mr Menezes said.

The offer from Utico includes “a S$400 million commitment to Hyflux by Utico, to ensure it remains a going concern and also to grow the business, along with further commitment to Hyflux’s retail perpetual securities and preference (PNP) shareholders”.

- Advertisement -

He added in the statement that the goal is for Hyflux and Utico “to enter into a definitive agreement on the proposed investment with the approval of senior creditors at the earliest and hold a town hall for both PNP and medium-term note holders” before August 2, which is when Hyflux’s next hearing is scheduled.

On July 11, the two firms announced that they had undertaken “informal discussions” and were on the way to firming up the S$400 million binding deal, subject to obtaining approvals from all stakeholders. This means an investment of S$300 million as equity and a S$100 million shareholder loan.

This proposed deal, according to Utico, will infuse a much-needed transfusion to the embattled water treatment firm, as well as put the two companies with their combined capabilities in a stronger position.

“Utico’s unique development, technical and financing abilities would also further enable Hyflux to exploit the opportunities in the Middle East, Asia, and Africa as well as other global markets where water demand is increasing, requiring innovative solutions,” Mr Menezes said.

- Advertisement -

Utico is the largest full-service private utility and developer in the UAE, the company’s website touts. It is also “a major full-service utilities provider in the greater Middle East region.” Furthermore, the company is “one of the leading green companies in the UAE, as the first company to have obtained ISO 50001 certification for Energy management from Quality Austria.” / TISG

Read related: Utico extends Hyflux signing deadline to June 27, requests town hall for shareholders by July

 Follow us on Social Media

Send in your scoops to 

- Advertisement -

Kumaran Pillai shares racist incident where Indian woman was called ‘black monster’, ‘black girl’

Singapore -- The Progress Singapore Party’s (PSP) Kumaran Pillai shared an incident where an Indian girl wrote that she was called “black monster” in primary school. He added that there are two kinds of racists - an outright one, and one...

Man allegedly shouts at McDonald’s manager because there is ham in egg mayo sandwich

Singapore – A member of the public took to social media to commend the staff manager of a McDonald's outlet for handling well an angry customer complaining about the ham in his egg mayo sandwich. A netizen took to Facebook page Complaint...

Man who pretended to be ‘sugar mummy’ gets 10 months jail for sex with boy, 17

Singapore—A 26-year-old man was sentenced to 10 months' jail on Monday (June 14) for having procured the sexual services of a 17-year-old boy. The man, Muhammad AL-Masfuiin Mushin, pretended to be a “sugar mummy” in order to entice the boy to come...
Follow us on Social Media

Send in your scoops to