Dubai: The UAE-based Middle East’s leading full service private utility and developer, Utico, said it is picking up an 88 per cent stake in Hyflux, setting the way for the restructuring of the Singaporean company.
Utico said the deal, subject to completion of approvals of the creditors, the Singapore Stock Exchange, investors and the court, will lead to giving a new lease of life to Hyflux. The equity valuation of the company is set at S$340 million though the total deal value could be S$535 million, higher than an earlier failed deal of S$530 million of SM Investments.
The deal includes a S$400 million commitment to Hyflux by Utico, to ensure it remains a going concern and also to grow the business, along with further commitment to Perpetual Securities and Preference (PNP) shareholders.
Hyflux will remain as a separate listed company with Utico owning 88 per cent. The deal is subject to regulatory and other approvals.
“The aim is to save time and move expeditiously as both Utico and Hyflux, investors and creditors are aware of the fact that time is of essence in preserving the value of the Singaporean company and arrest further slide,” said Richard Menezes, MD of Utico.
Menezes said this could give the PNP shareholders 50 per cent of their first S$2,000-3,000 as well as a cascade and staggered deal to the rest, thus offering them options to exit and hope for full redemption. Utico has also made a commitment to Securities Investors Association Singapore (SIAS) to list on the Singapore Stock exchange during a meeting in May 2019.