Utico to give PNP soft landing if IPO is delayed

Utico asks SIAS and Hyflux to hold a PNP vote for option 1 or 2 within 3 weeks.

Hyflux’s white knight Utico has confirmed that it will consider a soft landing for the holders of the embattled water treatment firm’s preference shares and perpetual securities (PNP) in the case that its listing on a stock exchange is delayed beyond two years, according to a statement. Utico will also consider this option if it gets the scheme passed and closed by April 2020.

This is in response to queries by Securities Investors Association Singapore (SIAS) on whether Utico will provide a soft landing payment, and how much Utico is prepared to pay the PNP holders on this.

The current scheme terms provides that the PNP holders who picked Option 2 will receive a share of 4% in cash value of Utico if it lists within two years after Hyflux’s restructuring.

However, this can only be assessed after the PNP holders vote for option 1 or 2 as offered by Utico for the past seven to eight months.

Option 1 is to receive an upfront cash payment of up to 50% of one’s investments, capped at $1,500.

Utico urged SIAS and Hyflux to put the offer to vote within two to three weeks and get the numbers sorted.

This will allow them to set this as a separate class for those who chose option 2, and allow the company to close those who chose option 1 as one class.

Others who don’t want to exit as option 1 and are willing to wait for 2 years or more, could get an offer for the soft landing option in a clearer manner, read the statement.

Furthermore, Hyflux shareholders or directors who have invested in MTN or PNP have forfeited their investments publicly in March, including their shares during the SMI deal and had given these to PNP & MTN holders.