Middle East's Utico submits $400m binding offer to invest in Hyflux

The move comes after the private utility and developer submitted a non-binding letter of intent in May 3.

UAE-based full service private utility and developer Utico has submitted a $400m binding offer to invest in Hyflux, following its submission of a non-binding letter of intent last 3 May.

The agreement includes an interim funding possibility as well as engagement with Public Utilities Board (PUB) and retail investors to strike out a win-win deal.

Richard Menezes, managing director of Utico, stated that the deal should satisfy the stakeholders of Hyflux and of Utico.

Last week, Hyflux has disclosed the identity of its Middle Eastern white knight, describing Utico as the largest private full service utility and developer which "possesses a reputable track record in the water and power industries" with shareholders and investors including sovereign institutions of Oman, Saudi Arabia, Bahrain and Brunei.

The move comes after a restructuring agreement between Hyflux and would-be white knight SMI was scrapped in early April, which ended with Hyflux suing SMI and claiming a $38.9m deposit placed into escrow.