Hyflux refutes reports of Utico's binding offer submission

It only received a draft from the Middle Eastern utility’s advisors.

Hyflux refuted media reports that Middle Eastern utility Utico has already submitted a binding term sheet to invest nearly $400m in the firm.

The report "UAE's Utico submits binding offer to invest in Hyflux: CEO" dated 12 May 2019 claims that the utility’s CEO Richard Menezes told Reuters that they had submitted a binding term sheet to Hyflux during the previous week.

“The company wishes to clarify that the company has only received a draft term sheet from the advisors of Utico. The company has been informed by Utico’s advisors that this draft term sheet, which was sent to the Company on 6 May 2019, is to be regarded as a binding term sheet,” Hyflux said.

Hyflux has not accepted or entered into the binding term sheet. “The company's advisors are currently engaged in active discussions with Utico's advisors to finalise the proposed terms of Utico's investment,” it added.

Moreover, Hyflux is also engaged in “active discussions” with Oyster Bay Fund for a possible investment of $500m and the purchase of shares in HyfluxShop Holdings for $26m. On 10 May, it received a non-binding letter of intent from the fund.