Utico raises Hyflux's equity valuation offer to $485m

The RA was also extended to end July.

Hyflux’s white knight investor Utico has announced that they raised the embattled water firm’s equity valuation offer to a minimum of $485m, a press release revealed.

The UAE-based firm stated that this includes cash and stock deals, details of which have been sent to Hyflux and all creditor parties.

Further, the restructuring agreement (RA) has been extended to end July, for closing by 30 August as discussed with Hyflux and its stakeholders during their 25 June stakeholders’ meeting.

“This higher offer and extension being contingent on RA of 2020 is defacto extension of RA of 26 November 2019 as well. Hence Utico considers this RA as valid and effective. This is also in line with the essence of our true commitment per the affidavit filed by Utico on 30 June as well,” Utico said. “The extension also allows for the scheme as filed in the court by Hyflux creditors to proceed with higher recovery. This will save time, further costs and also save value leakage.”

Also read: Hyflux and Utico clash over restructuring deal

Advisors were also offered $40m in fees as set out in the RA. Trade creditors will also be paid as per the deal dated RA of 26 November.

Further, Utico said that the proposal ensures that unsecured senior creditors get over 10% more recovery, and that P&P investors get a minimum that is 10% higher than the what was stipulated in the 26 November agreement between the two companies.

“Small P&P investors identified with less than $10,000 get 50% to 15% maximum recovery...whereas larger P&P investors of $10,000 and higher ($1m) get minimum 10% recovery,” it added.

They claimed that about 21,000 small investors will benefit with 50 to 15% recovery, whilst 12,000 to 13,000 larger investors will benefit with >10% recovery.

“Shareholders of Utico are keen to conclude this deal at the earliest and proceed to building value for all stakeholders of Utico and Hyflux,” the statement further added.