Hyflux on Tuesday published a list of frequently asked questions about its deal for strategic investor, consortium SM Investments, to invest a total of S$530 million.
In the answers, Hyflux said it was approached by many potential investors, with 16 signing non-disclosure agreements to conduct due diligence and with discussions held with eight parties.
The proposal from SM Investments, which is a consortium of the Salim Group and the Medco Group, was selected after a “competitive bidding process and after detailed consideration,” it said.
“One important consideration is the strategic fit between the businesses of the Salim Group and Medco Group and Hyflux’s competencies, with which Hyflux will be best placed to compete and thrive going forward,” Hyflux said.
Due to the SM Investments offer, Hyflux won’t be actively pursuing a voluntary sale of Tuaspring and it would be engaging with its secured bank creditor, which is Malayan Banking, over the decision.
Hyflux said there were no plans to delist the shares, but its stock and capital securities will remain suspended from trade on SGX until further announcement.
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.