Hyflux said on Monday that its wholly owned subsidiary, Hyflux Consumer Products, sold its entire 50 percent stake in PT Oasis Waters International to Clivers Co. for a consideration of around S$32.0 million.
The divestment was part of the company’s effort to streamline its business and to focus on its core infrastructure-sector activity, Hyflux said in a filing to SGX after the market close on Monday.
Indonesia-based PT Oasis bottles, sells and distributes bottled drinking water in Indonesia, while Clivers Co. is a Hong Kong-based investment company, it said.
Hyflux Consumer Products will use around S$13.9 million of the sale proceeds to repay intercompany payments due to a wholly owned Hyflux subsidiary and to Hyflux itself, the filing said. The rest of the proceeds will be used as a subordinated loan from Hyflux Consumer Products to Hyflux for working capital purposes, it said.
The book value of the PT Oasis stake was S$32.3 million as of 31 March 2018, it said.
The deal was completed on Monday and PT Oasis has ceased to be an associated company of Hyflux, the filing said.
In October, consortium SM Investments entered a binding agreement to invest S$530 million for a 60 percent stake in troubled water-treatment and power generation company Hyflux.
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.