International Finance

Utico submits binding offer to invest $400 million in Hyflux

Utico, Hyflux, Oyster Bay Fund
Utico would provide working capital and any interim funding to Hyflux, according to CEO Richard Menezes


United Arab Emirates-based utility firm Utico has submitted a binding offer to invest $400 million in Hyflux, Singapore’s global environmental solutions company, Utico chief executive Richard Menezes said.

As part of the offer, Menezes said that Utico would provide working capital and any interim funding to Hyflux. The latter is under a court-supervised restructuring process that could extensively impact the holdings of a large number of investors, The Straits Times reports.

“We submitted the binding term sheet last week. We are looking for the right deal that provides all stakeholders a satisfactory position in the company,” he said.  

The court has also granted Hyflux a five-day extension on its debt memorandum, according to the media report.

Legal advisor Smitha Menon represents Hyflux in the Utico deal. She said, “The investor (Utico) is doing due diligence, it’s a moving timeline. We are dealing with information requests as well as negotiating a possible structure.”

Last Friday, Hyflux said that it is talks with another potential investor Oyster Bay Fund in an effort to stave off liquidation.  The Oyster Bay Fund platform offers global investors easy access to top funds and investment houses.

According to Hyflux, Oyster Bay Fund has given it a non-binding letter of intent. “The letter of intent (from Oyster Bay Fund) is stated to automatically terminate if a judicial manager or liquidator is appointed over the company,” it said. The Straits Times believes that the fund is based in Bermuda.

Hyflux has also said that it is engaging with other potential investors showing keen interest in the Group.

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