SINGAPORE: After months of negotiations, beleaguered home-grown water treatment firm Hyflux has confirmed a S$400 million restructuring deal with United Arab Emirates utility company Utico.
In an announcement on Tuesday (Nov 26), Hyflux said Utico will subscribe to 95 per cent of its enlarged issued share capital for an aggregate subscription amount of S$300 million.
AdvertisementAdvertisementIt will also grant the firm a working capital line of S$100 million.
[h=3]READ: Hyflux, Utico still in negotiations to ink a definitive restructuring agreement: Hyflux lawyer[/h]While the total investment amount remains the same, this new deal will see Utico, which has been locked in talks with Hyflux for months now, take a larger stake in the embattled local company.
In its original investment offer in July, Utico said it would take an 88 per cent stake in Hyflux through S$300 million in equity injection as well as a S$100 million shareholder loan.
AdvertisementAdvertisementThis is Hyflux’s second restructuring agreement since it embarked on a court-supervised restructuring attempt in May 2018.
[h=3]READ: From making waves to drowning in red ink: Hyflux, Tuaspring and how a business giant came undone[/h]It had reached a S$530 million deal with Indonesian consortium SM Investments last October, but that arrangement fell through in April.
Hyflux then began negotiations with other potential investors, including Utico.
"Utico was identified by the company through the new investor search process which was commenced following the earlier termination of the proposed investment by SM Investments," the announcement said.
Utico is a developer of water and power infrastructure in the Middle East region, and is also the largest full service private utility company in the UAE, it added.
[h=3]READ: Our coverage of the Hyflux saga[/h]Let's block ads! (Why?)
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