UAE’s Utico provides Singapore’s Hyflux a $292mn binding agreement
The agreement includes interim funding possibility as well as engagement with Public Utilities Board (PUB) and retail investors to strike out a win-win deal.
Following the non-binding agreement that was announced by Hyflux to the Singapore Stock Exchange on 2nd May 2019, Utico today revealed that it has in fact sent a SG$400 million binding agreement to Hyflux to consummate a quick turnaround of the company.
The UAE-based Middle East’s leading full service private utility and developer, said in a statement yesterday that the agreement includes interim funding possibility as well as engagement with Public Utilities Board (PUB) and retail investors to strike out a win-win deal.
Mr. Richard Menezes , MD of Utico stated that the deal should satisfy the stakeholders of Hyflux and of Utico and for that a full and final interaction with full force is needed failing which a May 28th deadline for the deal signature and 29th hearing for getting extended moratorium looks highly unlikely.
The statement said that this deal has come to this stage after the last white knight investors, SIM of Indonesia, walked off the transaction without a deal after having spent over six months trying to close out an agreement.
It is also highly likely that Utico could in fact strike this deal as the only water player to have made an offer for Hyflux. Utico also brings with it strategic and valuable Middle East success stories.
Utico stated that other prospective suitors are funds and not major water players. This means their focus is mainly financial and they are eyeing the assets of Hyflux as a possible position which may not suit other stakeholders like retail investors and including clients and off takers.