SINGAPORE (May 16): Hyflux on Wednesday announced it had received a non-binding letter of interest from a 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.
The investor also showed interest in the operation and maintenance activities relating to these assets. The investor intends for this acquisition to grow its portfolio of desalination plants.
The identity of the investor was not revealed, but Hyflux only revealed that it was one of the top 10 largest desalination companies globally. The Investor is a subsidiary of one of the world’s leading infrastructure companies which is highly ranked for its expertise in transportation and greenfield infrastructure with a presence and workforce spanning five continents. The Investor is a specialist in 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.
This transaction is still subject to regulatory clearance, due diligence and the execution of a binding agreement with terms to be mutually agreed. 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 transaction (if any) are carried out in the shortest possible timeframe.
Although Hyflux will consider all serious offers and expressions of interest received, its priority will continue to be far a strategic investor for the entire group.
To recap, Hyflux has previously identified Utico FZE as its next potential white knight investor which might make a capital injection of $400 million, weeks ahead of its extended debt moratorium until May 24.
Utico has submitted an offer for a binding agreement to invest in Hyflux.
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.
