Utico offers part cash redemption to Hyflux investors

Small investors of up to $3,000 could get 50% cash redemption.

Middle East utilities firm Utico is offering the retail perpetual securities and preference share (PNP) investors of Hyflux a part cash redemption as part of its efforts to woo retail investors, adding that it hopes for a “full redemption with a plan and exit option”, according to a press release.

The move comes after the UAE firm held a meeting with Securities and Investors Association Singapore (SIAS) CEO David Gerald, following the company’s offer to hold a town hall for PNP investors.

“Full details can only be revealed later, but as part of the overall deal, small investors of up to $2,000 to $3,000 could get 50% cash redemption along with full redemption opportunity whilst the rest of the investors could get a similar but staggered and cascade deal,” Richard Menezes said, CEO of Utico.

He also guaranteed that all investors can have their money back if they support the deal, adding that it was only offered to PNP and not to senior creditors “who are taking a haircut, since they took an active business risk with ringside view, whereas PNP investors took a passive blind faith risk”.

If investors back the deal, Utico could consider a listing on the SGX, the firm added.

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.