Hyflux 6% Perpetual Securities

arctician

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Does this means they are proposing plan beyond A and B? Thought secured creditors and investor will only own shares of new hyflux while perps sit on books of old..not sure what this latest dev means
 

kehyi4

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RAK-based Utico to infuse Dh1b in Singapore firm

DUBAI: Utico, a Ras Al Khaimah-based Water Management Solutions company, said on Sunday it has entered into binding agreement to give $400 million Singapore dollars (Dh1.08 billion) to Hyflux for a quick turnaround of the company.

The agreement includes interim funding possibility as well as engagement with Public Utilities Board (PUB) and retail investors to strike out a win-win deal, Utico said in an emailed statement.

“Both Utico and Hyflux being in the water industry there is tremendous synergy we could jointly leverage in turn positively impacting onward business operations,” Richard Menezes, managing director of Utico, told Gulf News.

He stated that the deal should satisfy the stakeholders of Hyflux and of Utico and for that a full and final interaction with full force is needed failing which a May 28 deadline for the deal signature and May 29 hearing for getting extended moratorium looks highly unlikely.

The statement said that “this deal has come to this stage after the last white knight investors, SIM of Indonesia, walked off the transaction without a deal after having spent over six months trying to close out an agreement.” It is also highly likely that Utico could in fact strike this deal as the only water player to have made an offer for Hyflux. Utico also brings with it strategic and valuable Middle East success stories.

Utico stated that other prospective suitors are funds and not major water players, meaning their focus is mainly financial and they are eyeing the assets of Hyflux as a possible position which may not suit other stakeholders like retail investors and including clients and off takers.

Utico owns and operates three facilities in Ras Al Khaimah and Abu Dhabi with a desalination ownership capacity of potable water and it also has power generation capacity.
 

makav31i

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RAK-based Utico to infuse Dh1b in Singapore firm

DUBAI: Utico, a Ras Al Khaimah-based Water Management Solutions company, said on Sunday it has entered into binding agreement to give $400 million Singapore dollars (Dh1.08 billion) to Hyflux for a quick turnaround of the company.

The agreement includes interim funding possibility as well as engagement with Public Utilities Board (PUB) and retail investors to strike out a win-win deal, Utico said in an emailed statement.

“Both Utico and Hyflux being in the water industry there is tremendous synergy we could jointly leverage in turn positively impacting onward business operations,” Richard Menezes, managing director of Utico, told Gulf News.

He stated that the deal should satisfy the stakeholders of Hyflux and of Utico and for that a full and final interaction with full force is needed failing which a May 28 deadline for the deal signature and May 29 hearing for getting extended moratorium looks highly unlikely.

The statement said that “this deal has come to this stage after the last white knight investors, SIM of Indonesia, walked off the transaction without a deal after having spent over six months trying to close out an agreement.” It is also highly likely that Utico could in fact strike this deal as the only water player to have made an offer for Hyflux. Utico also brings with it strategic and valuable Middle East success stories.

Utico stated that other prospective suitors are funds and not major water players, meaning their focus is mainly financial and they are eyeing the assets of Hyflux as a possible position which may not suit other stakeholders like retail investors and including clients and off takers.

Utico owns and operates three facilities in Ras Al Khaimah and Abu Dhabi with a desalination ownership capacity of potable water and it also has power generation capacity.

I don't know what they want to engage PUB for as PUB already issued the notice that they would be taking over Tuaspring in a few days time...

Hyflux other Singapore based water plant asset is SingSpring which they only own 30% stake...

The incomplete TuasOne is under NEA which Hyflux owns 75%...

What does any of it have anything to do with PUB when Hyflux got no other assets which is under the purview of PUB other than the small stake in SingSpring...
 

kehyi4

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Hyflux has cash to last 2-3 months, says founder Olivia Lum
Finishing Qurayyat water project will make investment in Hyflux more alluring, she adds

Troubled water treatment firm Hyflux has enough cash for two or three months following an aggressive cost-cutting regime, founder Olivia Lum said in court papers.

The firm imposed a slew of austerity measures when its debt moratorium started a year ago and slashed headcount, cut senior management salaries and downsized its operations and headquarters. But the clock is ticking and Hyflux is in a race against time to nail down new investors to keep operations going and avoid liquidation.

It has managed to fend off a bid by seven banks - which are collectively owed $648.7 million in debt - to start the legal process that could have seen the firm and a key unit placed under judicial management.

The banks represent 31 per cent of senior debt.

Ms Lum said in an affidavit filed on April 30: "Far from being a 'mercy killing', a judicial management for a company as complex as Hyflux group is likely going to be a protracted and expensive process.

"The fact that the seven (banks) do not appear to have addressed the practical difficulties and potential costs associated with having judicial managers... to keep it running as a going concern strongly suggests that the real motivation is in fact liquidation."

Hyflux got a slight extension on its debt moratorium to May 29 from May 24, but further extensions will depend on whether it can provide "disclosure of running costs, including all of its restructuring efforts, and a timeline of the expected completion of restructuring effort", among other conditions.

It received a boost on Sunday when United Arab Emirates utility Utico upgraded its offer to a binding term sheet from a non-binding letter of intent to invest $400 million in Hyflux. Utico would provide working capital and any urgent interim funding as part of the offer, said managing director Richard Menezes in a Reuters report.

Hyflux said yesterday that it is finalising the term sheet with Utico but declined to give more details.

Ms Lum added that she is in talks with multiple parties on a potential investment, while financial adviser nTan is engaging a potential investor in South America and two others, in Taiwan and Singapore.

If it is allowed to continue its reorganisation process, Hyflux can keep sourcing for liquidity through a strategic investment and complete its pending projects. This would preserve their realisable value and deliver other financial benefits, Ms Lum said.

Hyflux's key assets are its equity stakes in its downstream subsidiaries, which carry out the group's main businesses in engineering and procurement and operations and maintenance.

A case in point is the Qurayyat Independent water project in Oman, which is not commercially operational yet due to technical issues relating to equipment purchased from third-party suppliers and civil and marine works carried out by third-party contractors.

If Hyflux and its Hydrochem unit are placed under judicial management, plant owner Qurayyat Desalination is likely to terminate the engineering, procurement and construction contract, especially if the judicial managers' inclinations are to abandon Qurayyat, Ms Lum said.

"There is a larger purpose to maintaining Qurayyat," she said. "There is an increasing demand for desalination plants in the Middle East. This is borne out by two of the more keen potential investors from this region. So completion of the (plant) makes the investment a more attractive prospect for strategic investors."
 
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https://www.reuters.com/article/us-utico-hyflux-investment/uaes-utico-submits-binding-offer-to-invest-in-hyflux-ceo-idUSKCN1SI08E

MAY 12, 2019 / 7:40 PM / UPDATED AN HOUR AGO
UAE's Utico submits binding offer to invest in Singapore's Hyflux: CEO
Stanley Carvalho
2 MIN READ

ABU DHABI (Reuters) - Utico FZC has submitted a binding offer to invest S$400 million ($294 million) in Singapore’s indebted water treatment firm Hyflux Ltd, the chief executive of the United Arab Emirates-based utility said on Sunday.

Utico had submitted a non-binding letter of intent this month to invest in the Singaporean firm.

Utico would provide working capital and any urgent interim funding to Hyflux as part of the offer, Richard Menezes said.

Once lauded as a national champion running a strategically important water source for the city-state, Hyflux is now under a court-supervised restructuring process that could wipe out the holdings of tens of thousands of retail investors.

Menezes told Reuters his firm would engage with Singapore’s water agency PUB and retail investors in Hyflux.

“We submitted the binding term sheet last week. We are looking for the right deal that provides all stakeholders a satisfactory position in the company,” he said.

Hyflux did not immediately respond to a request for comment outside business hours.

On Tuesday, the Singapore High Court prevented a group of banks from being carved out of Hyflux’s debt moratorium to file an application to have Hyflux placed under judicial management.

The court also granted Hyflux a five-day extension on its debt moratorium, originally set for May 24.

Hyflux said on Friday it received another non-binding letter of intent for investment worth S$500 million in the group from Oyster Bay Fund Ltd.

fake news :

https://www.businesstimes.com.sg/co...-it-has-not-received-binding-offer-from-utico
 

Knightoftheblackrose

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Means endgame double confirmed

COQMULEUAAENDew.jpg
 
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makav31i

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http://infopub.sgx.com/FileOpen/Announcement - 15 May 2019.ashx?App=Announcement&FileID=559642

UPDATES ON REORGANISATION PROCESS – RECEIPT OF NON-BINDING LETTER OF INTEREST FOR ACQUISITION OF SPECIFIED ASSETS

Hyflux Ltd. (the “Company”, and together with its subsidiaries, the “Group”) refers to its ongoing court supervised reorganisation process and announcements on 25 April 2019, 3 May 2019 and 10 May 2019 in relation to receipt by the Company of non-binding letters of intent from potential investors.

The Company has received a non-binding letter of interest from a potential investor (the “Investor”) stating its intention to acquire certain of the Company’s assets in Algeria and Oman, as well as other assets in the Middle East and North Africa region (the “Proposed Transaction”). The Investor’s interest also includes the operation and maintenance activities relating to these assets.

The Company understands that the Investor is one of the top 10 largest desalination companies globally. The Investor is a subsidiary of one of the world’s leading infrastructure companies which is highly ranked for its expertise in transportation and greenfield infrastructure with a presence and workforce spanning 5 continents. The Investor is a specialist in engineering, construction, operation and maintenance of water treatment facilities, in particular water desalination plants, with a focus on build-own-operate-transfer, management of concessions and related services. The Investor intends the Proposed Transaction to grow its portfolio of desalination plants.

The Proposed Transaction is subject to regulatory clearance, due diligence and the execution of a binding agreement with terms to be mutually agreed. The Investor is conscious of the timeline and has indicated that it would be willing to devote all necessary resources to ensure that the due diligence process and the consummation of the Proposed Transaction (if any) are carried out in the shortest possible timeframe.

While the Company will consider all serious offers and expressions of interest received, the priority remains for a strategic investor for the entire Group. The Company is continuing its engagement with all potential investors and will make the appropriate announcements as and when there are any further material developments on the above matter.
 

sgdividends

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http://infopub.sgx.com/FileOpen/Announcement - 15 May 2019.ashx?App=Announcement&FileID=559642

UPDATES ON REORGANISATION PROCESS – RECEIPT OF NON-BINDING LETTER OF INTEREST FOR ACQUISITION OF SPECIFIED ASSETS

Hyflux Ltd. (the “Company”, and together with its subsidiaries, the “Group”) refers to its ongoing court supervised reorganisation process and announcements on 25 April 2019, 3 May 2019 and 10 May 2019 in relation to receipt by the Company of non-binding letters of intent from potential investors.

The Company has received a non-binding letter of interest from a potential investor (the “Investor”) stating its intention to acquire certain of the Company’s assets in Algeria and Oman, as well as other assets in the Middle East and North Africa region (the “Proposed Transaction”). The Investor’s interest also includes the operation and maintenance activities relating to these assets.

The Company understands that the Investor is one of the top 10 largest desalination companies globally. The Investor is a subsidiary of one of the world’s leading infrastructure companies which is highly ranked for its expertise in transportation and greenfield infrastructure with a presence and workforce spanning 5 continents. The Investor is a specialist in engineering, construction, operation and maintenance of water treatment facilities, in particular water desalination plants, with a focus on build-own-operate-transfer, management of concessions and related services. The Investor intends the Proposed Transaction to grow its portfolio of desalination plants.

The Proposed Transaction is subject to regulatory clearance, due diligence and the execution of a binding agreement with terms to be mutually agreed. The Investor is conscious of the timeline and has indicated that it would be willing to devote all necessary resources to ensure that the due diligence process and the consummation of the Proposed Transaction (if any) are carried out in the shortest possible timeframe.

While the Company will consider all serious offers and expressions of interest received, the priority remains for a strategic investor for the entire Group. The Company is continuing its engagement with all potential investors and will make the appropriate announcements as and when there are any further material developments on the above matter.

Thanks for the update.
 

sgdividends

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I never hear a company lose a "good" major asset, suddenly become more attractive..

First time I hear.
 

Peasantboy

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But it loses an asset along with the condition that it provides yyy/m3 water at $xxx.

So it loses the liability associated with said asset

I never hear a company lose a "good" major asset, suddenly become more attractive..

First time I hear.
 

makav31i

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I never hear a company lose a "good" major asset, suddenly become more attractive..

First time I hear.

Please tell us where it state that Tuaspring is a "good" major asset? It is Hyflux biggest assets which is also their biggest liability...

I'm really shocked that you do not know what a huge relief and a bailout that PUB taking over Tuaspring for $0 without pursuing any liquidated damages on Hyflux for breaching the Water Purchase Agreement...

Hyflux signed a binding contract to PUB to sell water to PUB for 25 years and they did not fulfill their end of the contract...If this was to go to court, Hyflux would definitely have to pay back PUB for breaching the contract...

I really wonder what value add do you add for your readers if you don't understand what is going on with your own investment...
 

makav31i

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I am of the same opinion as well. Hyflux retail investors are complaining about inadequate protection because there is high chances they will be wiped out.

If retail investors were not allowed to purchase perfs and perps, etc, the narrative would be different. It will be retail investors are denied high returns instruments, elite enriching elite, etc.

However, after monitoring the TG group, I have notice that some (at least one who don’t understand English well and has been relying on Google translate) are not financially literate and some who are spouting nonsense.

imo, the middle ground could be for investors to take a basic course (like what phv drivers are doing). I know that it cannot and will not be able to train everthing an investor needs to know. But basic stuff of investing like risk, they can and will be wiped out, never put all eggs into a basket, do not invest what you cannot afford to lose, etc.

pjUKF8x.png


This from the Telegram Chat today, just shows that if this Hyflux bonds are offered to Accredited Investors only, this group of people will be complaining that it is not made available to retail investors... Previously they called Hyflux a "Blue Chip" and "water is essential for Singapore survival"...
 

SpinFire

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pjUKF8x.png


This from the Telegram Chat today, just shows that if this Hyflux bonds are offered to Accredited Investors only, this group of people will be complaining that it is not made available to retail investors... Previously they called Hyflux a "Blue Chip" and "water is essential for Singapore survival"...

LTA and HDB should take the initiative to offer retail bonds every now and then
 
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