Hyflux: One pre-qualified bidder has made offer for Tuaspring

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One of the two parties pre-qualified to bid for the Tuaspring power and water plant has made an offer, Hyflux said in a filing to SGX on Friday.

“This bid is being assessed by the company, and remains subject to approvals from the relevant authorities,” Hyflux said in the update on its restructuring process.

Hyflux said that due to confidentiality requirements and considerations, it cannot provide further comment on the Tuaspring divestment process.

But it reiterated that it was still weighing other options.

“The company remains in negotiations for pursuing strategic investments in the overall business of the Hyflux Group (with or without Tuaspring) as part of the Hyflux Group’s wider reorganisation process,” it said.

“The company has not committed itself to any particular option or any of the proposals received at this point in time and remains open to considering various opportunities. Any proposals received are also subject to approval by the relevant authorities where required,” Hyflux added.

Bloomberg reported last week, citing people with knowledge of the matter, that Sembcorp Industries had emerged as the only remaining bidder for the Tuaspring project, the Business Times reported on Wednesday, citing people with knowledge of the matter.

Bloomberg reported the bid was below Tuaspring’s book value and won’t fully pay back loans to the project’s main creditor, Malayan Banking.

In May, Hyflux had filed for court protection, saying the oversupply of gas in Singapore’s market had resulted in depressed electricity prices, which hit earnings in 2017 and drove losses in the first quarter.

In addition, the company said in May that its plan to divest the Tuaspring project in Singapore and the Tianjin Dagang plant in China have taken longer than expected, adding stress to the business.

Hyflux shares have been suspended since May 23.

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