Friday 25 September 2020

Utico plans $293m investment in Singapore water company

RAS AL KHAIMAH, May 13, 2019

Utico, a utility firm based in the northern emirate of Ras Al Khaimah, said it has submitted a binding offer to invest S$400 million ($293.42 million) in Singapore’s water treatment firm Hyflux.

As part of the offer, the Emirati company will also provide working capital and any urgent interim funding to Hyflux, said its top official.

"Both Utico and Hyflux being in the water industry there is tremendous synergy we could jointly leverage in turn positively impacting onward business operations," remarked CEO Richard Menezes.

Utico will soon engage with Singapore’s water agency PUB and retail investors in Hyflux for the closing of the deal, he added.

According to him, Utico possesses a reputable track record in the water and power industries which is anchored by a spirit of innovation, strong funding and a diversified investment and projects portfolio including municipal partnerships.

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

The Singapore company said its legal and financial advisors are currently engaged in active discussions with Utico’s counterparts on the terms of Utico’s investment, to be set out in a binding term sheet for execution.

Once the deal is done, the UAE utilities group - whose shareholders and investors include sovereign institutions of the governments of Oman, Saudi Arabia, Bahrain and Brunei - plans to retain Hyflux’s current management.

Meanwhile, Hyflux revealed that it is also in concurrent discussions with several other parties interested in investing in the group.

Last week it had received another non-binding letter of intent for investment worth S$500 million in the group from Oyster Bay Fund, it added.-TradeArabia News Service


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