Chinese energy services provider eyeing Hyflux assets, Business News and Top Stories



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SINGAPORE – Hyundai, an indebted water treatment company, has received a fourth binding letter (LOI) for a potential investment from a Chinese energy services provider.

The announcement, issued at SGX after midnight on Friday (June 14), preceded the June 17 deadline to sign a binding agreement with Utico of the United Arab Emirates for its investment of $ 400 million .

The company is in talks with at least seven investors for a possible infusion of cash, and plans to enter into a binding term with one of them in mid-June. His debt moratorium approved by the court will end on August 2.

When asked on Saturday (June 15), Hyflux declined to disclose details of the potential investment, and whether the Chinese investor is among the mentioned seven at a hearing on May 29.

I would just say that the investor is a subsidiary of a state-owned company that provides energy services, and its holding company provides expertise in wind and solar power solutions, nuclear industry, medical technology and agriculture.

LOI is subject to regulatory clearance, due diligence and the execution of a binding agreement on mutually agreed terms.

The Chinese investor signed a non-disclosure agreement, initiated a preliminary due diligence in the group and also reserved its right to terminate the discussions should a judicial manager or liquidator be appointed by Hyflux or its subsidiaries.

Hyflux added that it continues its engagement with all potential investors.

The troubled company has prioritized discussions with investors who are willing to keep the Hyflux group intact, unlike those who prefer to "pick" parts of their business, said Hyflux lawyer Manoj Sandrasegara at the hearing on May 29.

In addition to Utico, the Mauritius-based Oyster Bay Investment Fund is in advanced negotiations on a binding agreement of up to $ 500 million.

A third potential investor, considered a major desalination company, has issued a letter of interest for certain assets in Algeria, Oman, the Middle East and North Africa.

Four more companies are also discussing a possible investment. They are a major player in the energy sector in Asia, seeking to merge with the Hyflux Group, a fund whose corporate strategy included revolving troubled companies, a major civil engineering and nuclear engineering contractor in Asia and a major waste disposal participant.

Hyflux will meet with stakeholders and draft the terms of a restructuring plan by the end of this month, and aims to seek leave to convene scheme meetings for creditors in July.

Hyflux called on May 29 for a four-month extension of the debt moratorium, saying it was in discussions with other potential investors.

But Supreme Court Justice Aedit Abdullah said he was "worried about giving a four-month extension at a time," stating that the company needs to be kept under a tight collar.

That said, he told Hyflux to "assure investors that I will be liable, if progress continues to be made, to an additional two-month extension" beyond August 2.

The Supreme Court will hear an update on the restructuring process of Hyflux on that day, and the company must request an extension of the moratorium.

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