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Hyflux receives letter of interest from potential Spanish suitor

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Hyflux on Thursday said it has received a letter of interest (LOI) from Spain-based FCC Aqualia.

HYFLUX on Thursday said it has received a letter of interest (LOI) from Spain-based FCC Aqualia.

The LOI is for a potential transaction involving Hyflux or its assets, the troubled water treatment firm said in a bourse filing, without disclosing further information.

The company added that it will make the appropriate announcements as and when there are material developments in this matter.

Aqualia is a water management company owned by Spain-listed construction group FCC and Australian ethical fund IFM Investors.

Last October, before Hyflux signed the restructuring agreement with potential white knight Utico, the Middle Eastern utility firm had claimed that Aqualia, as well as Europe's Suez Group, were eyeing Hyflux’s Algeria project.            

In Algeria, Hyflux has desalination plants in Magtaa and in Souk Tleta.

The water treatment firm in March 2019 received a request for arbitration from state-owned Algerian Energy Company relating to the Souk Tleta plant. It concerned disputes surrounding agreements related to the plant dating back to 2007.

Separately, creditors of Hyflux and three of its subsidiaries will vote on the schemes of arrangement for Utico’s rescue package on April 22 and 23 this year.

Before that, the Securities Investors Association (Singapore) or Sias will conduct its own independent town hall sessions on March 23 for the retail holders of the perpetual securities and preference shares.