Hyflux clarifies it has not received binding offer from Utico

NO binding offer to invest in Hyflux has been submitted by Utico, Hyflux said on Tuesday, contrary to a Reuters report that was published over the weekend.

In the report dated May 12 titled UAE's Utico submits binding offer to invest in Hyflux: CEO, Utico's chief executive Richard Menezes was quoted as telling Reuters that the United Arab Emirates-based utility firm had submitted a binding term sheet to Hyflux last week.

In fact, all that Hyflux has received from Utico's advisers is a "draft term sheet", Hyflux clarified on Tuesday.

"The company has been informed by Utico's advisers that this draft term sheet, which was sent to the company on May 6, is to be regarded as a binding term sheet," it added.

Hyflux said it has not accepted or entered into any binding term sheet with Utico.

"The company's advisers are currently engaged in active discussions with Utico's advisers to finalise the proposed terms of Utico's investment," Hyflux said.

Its advisers are also concurrently engaged in discussions with Oyster Bay Fund, another potential investor.

Separately, Maybank, the secured project finance lender for Hyflux subsidiary Tuaspring, has appointed Timothy James Reid and Ng Yau Yee Theresa, both of Ferrier Hodgson, as joint receivers and managers over Tuaspring's charged property.

The charged property refers to the Tuaspring co-generation power plant, and excludes the desalination plant and other shared infrastructure that are subject to the rights of national water agency PUB.

PUB had commissioned Hyflux to build the Tuaspring integrated water and power plant, and Maybank had lent Hyflux money to build it, secured against the value of the plant.