HYFLUX said on Wednesday that it has sought clarification from potential white knight Utico regarding a statement it had made on Tuesday valuing its rescue deal at S$535 million.
In a regulatory update, the embattled water treatment company clarified that the S$300 million equity injection and S$100 million shareholder loan, along with Utico's current intention to offer the cash equivalent of 4 per cent stake in the enlarged Utico group "has not changed".
These were the terms stated in a July 11 joint announcement by both Hyflux and UAE utility Utico, which said at the time that both parties were still working towards a binding agreement.
Hyflux said that Utico had assessed the deal value of its proposed investment as S$535 million, further to discussions between Utico, relevant stakeholders and definitive agreements being entered into between both parties.This amount also assumes all approvals are obtained and the current commercial terms being negotiated with creditors are accepted.
"The company is in continued talks with Utico and stakeholders and material developments will be announced on SGXNet as appropriate,” Hyflux added.
On Tuesday, Utico said that the equity valuation of Hyflux is set at S$340 million and that the total deal value could be S$535 million, higher than an earlier failed deal of S$530 million that SM Investments (SMI) had proposed.
Utico’s proposed investment, which is subject to regulatory and other approvals if the deal materialises, includes a S$400 million commitment to Hyflux to ensure it remains a going concern and also to grow the business, along with further commitment to the PNP shareholders.
Hyflux will remain as a separate listed company with Utico owning 88 per cent, the Utico's statement said.
Utico chief executive Richard Menezes also said that the investment would place both companies with their joint capabilities and abilities in a stronger position, while creating synergies for cost savings and new offerings.