Hyflux announces third potential investor, with letter of interest to acquire overseas assets
Hyflux has received a non-binding letter of interest from a potential investor, the water treatment firm said on Wednesday (May 15) in an update of its ongoing restructuring process.
SINGAPORE: Hyflux on Wednesday (May 15) announced another potential investor which has submitted a non-binding letter of interest.
The potential investor, which was not named, expressed interest in acquiring some of Hyflux's assets in Algeria and Oman, as well as other assets in the Middle East and North African region.
"The investor’s interest also includes the operation and maintenance activities relating to these assets," said Hyflux in a bourse filing.
It described the potential investor as one of the top 10 largest desalination companies globally, and is a specialist in the engineering, construction, operation and maintenance of water treatment facilities.
It has a presence in five continents and aims to grow its portfolio of desalination plants with the proposed transaction, according to Hyflux.
This is the third potential investor which has shown interest in the embattled water treatment firm, which has been under a court-supervised restructuring process since last May.
United Arab Emirates utility company Utico had submitted a non-binding letter of intent that could give Hyflux a potential S$400 million lifeline. Hyflux is also in talks with Oyster Bay Fund, a global multi-strategy investment fund that's mulling an investment of up to S$500 million.
The proposed deal with the latest potential investor is 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 proposed transaction (if any) are carried out in the shortest possible timeframe," said Hyflux.
"While the company will consider all serious offers and expressions of interest received, the priority remains for a strategic investor for the entire Group."
READ: ‘We have not lost faith’: Hundreds of Hyflux investors gather to express concerns at Hong Lim Park
Once a star company, Hyflux's debt restructuring has been marked by twists and turns, including the termination of a key rescue deal with Indonesian consortium SM Investments.
The Singapore High Court had granted Hyflux a one-month extension to its debt moratorium until May 29.