Hyflux: Did not enter into binding term sheet with Utico

Singapore 50 dollar bill

This article was originally published on Tuesday, 14 May 2019 at 16:47 SGT; it has since been updated.

Hyflux has received a binding offer from United Arab Emirates-based Utico, but has not accepted or entered into a binding deal, the troubled Singapore water player said in a filing to SGX Tuesday.

“The company’s advisors are currently engaged in active discussions with Utico’s advisers to finalize the proposed terms of Utico’s investment,” Hyflux said.

On Sunday, Reuters reported, citing Utico CEO Richard Menezes, that the Middle Eastern utility company had provided Hyflux a binding offer for a S$400 million investment.

Hyflux said it had received a draft term sheet from Utico on 6 May, with the UAE-based company later saying it should be regarded as a binding offer.

Hyflux added that it is concurrently involved in “active discussions” with Oyster Bay Fund on a proposed investment.

Maybank appoints receivers

In addition, Hyflux said Malayan Banking has appointed Timothy James Reid and Ng Yau Yee Theresa, both of Ferrier Hodgson, as receivers and managers over the charged property under the terms of the Tuaspring plant’s debenture with the bank.

In April, Hyflux’s troubled Tuaspring plant received a letter from Maybank declaring immediately payable the S$509.12 million drawn down under term loan facilities and US$44.53 million (S$60.72 million) cash cover for contingent liabilities.


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