It includes a $400m commitment to the water treatment firm.
UAE-based Utico will pick up a stake of 88% in Hyflux that may be valued at $535m, which is higher than the water treatment firm’s equity valuation at $340m, according to the utility company.
This follows after a joint press release of both firms said that they are ‘progressing’ towards this deal.
The agreement, still subject to completion of approvals of the creditors, the SGX, investors and the court, will include a $400m commitment to Hyflux as well as a further commitment to Perpetual Securities and Preference (PNP) shareholders.
Utico is also looking to address the concerns of the Hyflux PNP shareholders by offering cash equivalent of a 4% stake in the group along with additional cash payouts. PNP shareholders could have 50% of its first $2,000-$3,000.
The deal may also allow Hyflux to expand in the Middle East, Asia and Africa.
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