Hyflux receives letter from potential investor

HYFLUX announced in a regulatory filing on Friday that it has received a letter from Johnny Widjaja, who expressed interest in investing up to S$300 million in the group in the most "expedient manner possible" - including buying up the existing debt of the group.

The Business Times (BT) understands that Mr Widjaja is a businessman from an Indonesian industrial company.

This comes after bank lenders sought to put Hyflux under judicial management (JM) and Hyflux remains at odds with potential investor Utico over whether last year's restructuring agreement is still on the table. Utico is a utilities firm from the United Arab Emirates.

According to the filing, the letter stated that once Mr Widjaja becomes the substantial shareholder of the company or the owner of the said debt, he is prepared to provide S$100 million of working capital to the group.

The detailed terms of the proposed investment are still not available.

Mr Widjaja further stated, among other things, that he would not consider making this investment if the current management of Hyflux, including Olivia Lum and the board of directors are removed, or if any member of the group is placed into judicial management or liquidation.

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He also provided a letter from an Indonesian bank to confirm that he has the necessary funds available and is willing to use the funds for the investment in the company.

Hyflux said that it will be engaging with Mr Widjaja and/or his advisors to obtain further information regarding the terms of his proposed investment.