SINGAPORE (May 28): Embattled water company, Hyflux on Tuesday clarified in a Singapore Exchange filing that its recent meeting with Utico did not entail any binding agreements or conclusive number on how much its investors will be getting.
The regulatory statement was made on the back of a statement issued by Utico, which said it had met with Hyflux’s financial and legal advisors, as well as the Securities Investors Association Singapore (Sias) and others last week.
A Monday Straits Times article reported Utico is offering “part cash redemption and also a hope for full redemption with a plan and exit option” to the 3,400 retail investors of Hyflux’s perpetual securities and preference shares.
According to the article, Utico is also quoted in the article saying that “small investors of up to $2,000 to $3,000 could get 50% cash redemption along with full redemption opportunity, while the rest of the investors could get a similar, but staggered and cascade deal”.
In a May 14 announcement, Hyflux said it has not yet accepted or entered into the term sheet received from the advisors to Utico on May 6. This position has not changed.
Meanwhile, Utico is not the only investor Hyflux is in talks with. On May 16, Hyflux announced that it had received a non-binding letter of interest from an unnamed potential investor to acquire certain of the company’s assets in Algeria and Oman, as well as other assets in the Middle East and North Africa region.
See: Potential investor interested in Hyflux's overseas assets
Hyflux also received another non-binding letter of intent from Oyster Bay Fund to invest up to $500 million in the group. And as an indication of the investor’s good faith, Oyster Bay Fund is prepared to purchase preference and ordinary shares in HyfluxShop Holdings from the company for up to $26 million, which the Hyflux understands from the investor is to be used as working capital.
