Utico inks restructuring agreement with Hyflux

The utility firm assured that they will take “swift action” on Hyflux’s projects.

UAE utilities firm Utico has signed and released its restructuring agreement with struggling water treatment firm Hyflux in a deal that would allow the white knight investor to hold 88% of the company.

Utico assured that the deal finds a resolution for creditors and perpetual securities and preference (PNP) investors and development projects that have been languishing since the moratorium in May 2018.

It also said that with the support of Hyflux board and management, “swift action will be taken to bring all projects up to speed as well as take on new projects for the company.”

The announcement came after the firm expressed concerns over the deal’s delay. Utico set 16 August as the deadline to ink the said agreement which was extended to 26 August.

Furthermore, Utico also made a prior announcement stating that the 88% stake in Hyflux could be valued at $535m. This figure is higher than the water treatment firm’s equity valuation at $340m.

Utico first expressed its intent to inject $400m into Hyflux in late April after the latter’s deal with SM Investments (SMI) fell through in early April.