Embattled Hyflux’s suitor offers deal to mom and pop investors

Pic by Straits Times, Singapore

SINGAPORE: United Arab Emirates-based utility Utico FZC is offering some payments to retail investors in Hyflux Ltd.’s perpetual securities and preference shares, as they attempt to recover approximately S$900 million in investments.

Utico Chief Executive Officer Richard Menezes said in a statement Sunday the firm was offering “part cash redemption and also a hope for full redemption with a plan and exit option.”

Small investors of up to S$2,000 to S$3,000 could get 50% cash redemption along with full redemption opportunity, while the rest of the investors could get a similar, but staggered and cascade deal, according to Menezes.

Hyflux is battling to salvage itself, seeking to fix billions in liabilities after an expansion into the power-supply business that went awry. 

The company is under pressure to bring in a white knight investor, as a court hearing looms on May 29, which will determine whether it gets more breathing room to restructure itself. 

Creditors have been circling the company, with a major lender to the Singapore water treatment firm appointing receivers over part of a key asset.

If Utico gets support from preference share and perpetual holders, it “could consider listing in Singapore,” according to Menezes. 

Utico said it has also met with the Securities & Investors Association Singapore and Hyflux’s advisers, and it plans to hold a town hall meeting for investors, subject to the court granting a moratorium. - Bloomberg