White knight Utico sets August 16 deadline to ink deal with Hyflux

The would-be white knight gave Hyflux two weeks, “failing which, they will walk".

Embattled water treatment facility Hyflux faces a two-week deadline to seal the $400m investment deal with would-be white knight Utico, a Hyflux representative said Friday.

Also read: Utico's 88% stake acquisition in Hyflux could reach $535m

Utico’s chief executive Richard Menezes said that the UAE-based utility firm reserves the right to walk away if Hyflux hasn’t signed a deal by 16 August. Utico is planning to take up an 88% equity stake in the water treatment firm for $400m.

He noted that currently they are “just a millimetre away from signing,” and said that the finalisation of the deal now solely depends on Hyflux’s side. “The value of Hyflux is falling,” he added.

The executive also said that it has agreed to provide money for the TuasOne waste-to-energy plant which he called Hyflux’s “crown jewel,” but noted that it needs more money next month, saying, “They are running out of money at the project level.”

Menezes spoke to reporters at the end of a Singapore High Court session on Friday, during which Hyflux appealed to extend its debt moratorium for a fifth-time, until November. Justice Aedit Abdullah gave the company until September 30.

Also read: Hyflux white knight Utico mulls $500m Singapore IPO

Hyflux first received an expression of intent to invest from Utico in late April after its deal with Indonesia's SM Investments (SMI) fell through. It also received a non-binding letter of intent from global multi-strategy investment fund Oyster Bay which considered investing up to $500m into the firm in May, whilst an unnamed state-owned power service firm from China has also indicated interest.