DUBAI: Utico, a Ras Al Khaimah-based Water Management Solutions company, said on Sunday it has entered into binding agreement to give $400 million Singapore dollars (Dh1.08 billion) to Hyflux for a quick turnaround of the company.

The agreement includes interim funding possibility as well as engagement with Public Utilities Board (PUB) and retail investors to strike out a win-win deal, Utico said in an emailed statement.

“Both Utico and Hyflux being in the water industry there is tremendous synergy we could jointly leverage in turn positively impacting onward business operations,” Richard Menezes, managing director of Utico, told Gulf News.

He stated that the deal should satisfy the stakeholders of Hyflux and of Utico and for that a full and final interaction with full force is needed failing which a May 28 deadline for the deal signature and May 29 hearing for getting extended moratorium looks highly unlikely.

The statement said that “this deal has come to this stage after the last white knight investors, SIM of Indonesia, walked off the transaction without a deal after having spent over six months trying to close out an agreement.” It is also highly likely that Utico could in fact strike this deal as the only water player to have made an offer for Hyflux. Utico also brings with it strategic and valuable Middle East success stories.

Utico stated that other prospective suitors are funds and not major water players, meaning their focus is mainly financial and they are eyeing the assets of Hyflux as a possible position which may not suit other stakeholders like retail investors and including clients and off takers.

Utico owns and operates three facilities in Ras Al Khaimah and Abu Dhabi with a desalination ownership capacity of potable water and it also has power generation capacity.