No binding agreement with Utico yet: Hyflux

The move comes after the UAE-based firm offered a part cash redemption to its retail investors.

Hyflux has clarified in an SGX filing that it had not “accepted or entered into the term sheet received from the advisors to Utico,” in response to an article saying that it is offered a part cash redemption to woo retail investors of up to $2,000 to $3,000 with 50% cash redemption.

It also added that “the Company and its advisors understand that the statements quoted in the Article are exploratory in nature and are approaches currently contemplated by Utico.”

“The Company is in continued talks with several potential investors, including Utico, and material developments have been announced on SGXNet as appropriate,” Hyflux said in a statement.

Apart from Utico, Hyflux also received a non-binding letter of intent from global multi-strategy investment fund Oyster Bay Fund which plans to invest $500m.

The UAE-based full service private utility and developer Utico had previously announced intentions of submitting a $400m binding offer to invest in the struggling water treatment company. Utico also attempted to convince the Public Utilities Board (PUB) to postpone the takeover of the Tuaspring desalination plant, which was rejected by the agency, and also offered to hold a town hall meeting with Hyflux’ investors.