Hyflux receives letter of interest from Spanish water management firm for ‘potential transaction’

Hyflux receives letter of interest from Spanish water management firm for ‘potential transaction’

Hyflux Singapore (1)
(Photo: Jeremy Long)

SINGAPORE: Another potential investor has come knocking on the doors of embattled water treatment firm Hyflux.

The company, which in the midst of a high-profile debt restructuring, said on Thursday (Mar 19) that it has received a letter of interest from Spain-based water management company FCC Aqualia.

The letter of interest is for “a potential transaction involving the company or its assets”, Hyflux said in a filing to the Singapore Exchange, without providing details.

The company will make appropriate announcements as and when there are further material developments in this matter, it added.

FCC Aqualia's website described it as Europe’s fourth-largest private water firm in terms of population served. It is owned by Spanish building and infrastructure company FCC and Australian ethical fund IFM Investors.

READ: Hyflux to hold scheme meetings on Apr 22 and 23 for creditors to vote on restructuring plan

This marks the latest suitor that has come calling despite Hyflux having signed a S$400 million rescue deal with United Arab Emirates utility company Utico in November last year. Creditors will get to vote on this rescue deal next month.

Other potential investors include a little-known Aqua Munda, which has offered to purchase about S$1.8 billion worth of Hyflux’s debts. This offer, first floated in December 2019, has been extended twice to date.

A Singapore-based company called Longview International Holdings has also expressed interest in investing in Hyflux together with a Chinese joint venture partner.

In a letter sent to Hyflux last month, it invited the Singapore firm “to explore the terms on which the joint venture would be prepared to invest”. There have been no updates on this.

Source: CNA/sk(aj)