Hyflux subsidiary to set up investment holding company with TUS-Holdings unit

SINGAPORE'S water and environmental solutions company Hyflux on Wednesday announced that its wholly owned subsidiary, Hyflux Capital (Singapore), has entered into a shareholders' agreement with Tuspark Technology Services Investment (Tuspark TSI) to set up an investment holding company, in which Hyflux Capital (Singapore) will have a 25 per cent shareholding interest.

Tuspark TSI is a subsidiary of TUS-Holdings Co Ltd, the former Tsinghua University Science Park (TusPark) Development Center founded in August 1994.

The investment holding company is intended to hold strategic investments in water projects in China, Hyflux said in a statement.

On Wednesday, Hyflux also announced that its wholly owned subsidiary, Spring China Utility, had entered into sale-and-purchase agreements with Tuspark TSI and Hyflux Capital (Singapore) to eventually divest to the investment holding company its entire equity interest in special-purpose vehicles (SPVs) which ultimately hold five of Hyflux's water plants in China.

The aggregate consideration for the transaction, payable in cash, is 890 million yuan (S$195 million).

The consideration is payable in tranches subject to the fulfilment of certain conditions including but not limited to regulatory approval and restrictions as set out in the sale-and-purchase agreements.

The aggregate book value of the SPVs and water plants, including estimated directly attributable expenses and charges as at June 30, 2015, is S$153 million, Hyflux said.

The group will account for the transaction in its consolidated financial statements for the period ended June 30, 2015.

As at 10.21am on Wednesday, Hyflux's counter was trading up 2.326 per cent at S$0.88.