Hyflux said Friday it will negotiate exclusively with Utico FZC until the U.A.E developer’s 26 August deadline to reach a definitive agreement for a potential investment into the troubled Singapore water infrastructure player.
“As negotiations with Utico is the most advanced amongst all the potential investors, the company intends to engage exclusively with Utico from now until 26 August,” Hyflux said in a filing to SGX.
“The company and its advisers will negotiate diligently with Utico with a view to entering into a definitive agreement by 26 August,” it added.
The troubled water infrastructure player said it reached a proposed agreement with Utico, the Middle East’s largest full-service utility and developer, to make a S$300 million equity investment and a S$100 million loan. The size of the potential investment, including payouts to small security holders, was later clarified, with Utico valuing the total deal at S$535 million.
The proposed investment would see Utico take an 88 percent stake in Hyflux.