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Hyflux says still in talks on possible Tuaspring sale, strategic investment; no details given
HYFLUX remains actively engaged in discussions with potential investors in its Tuaspring water and power project and in the rest of the group, but has not committed to any particular option and remains open to considering various opportunities, the water and power infrastructure company announced on Friday during the midday trading break.
Hyflux, which is seeking to restructure its debts through the Singapore courts, said that it has parallel and concurrent processes to consider, first, the divestment of Tuaspring; and, second, strategic investments in Hyflux itself.
"These processes run in parallel and are at the stage where the company is actively engaged in discussions with potential investors in Tuaspring and/or the rest of the Hyflux group," the company said.
"The company has not committed itself to any particular option or any of the proposals received at this point in time and remains open to considering various opportunities. Any proposals received are also subject to approval by the relevant authorities where required."
But Hyflux said that it cannot comment on specific details of discussions at this time due to confidentiality requirements and the need to protect the company's interests in ongoing talks.
The company's comments came amid heightened speculation about Hyflux's attempts to raise capital. The company is expected to give an update to the Singapore court on Monday.
Bloomberg, citing sources, had reported earlier this week that Sembcorp Industries was the only party to submit a final bid for Tuaspring, a massive desalination project that Hyflux is hoping to sell. The report said that Keppel, the only other candidate that was approved by Singapore's Public Utilities Board, had declined to submit a binding bid.
The Bloomberg report also said that Hyflux could consider overseas investors that are interested in buying over the entire Hyflux business, but that regulatory approval could pose a hurdle to those plans.
Hyflux neither affirmed nor denied Bloomberg's report, but cautioned stakeholders against relying on third-party information sources that could be incomplete or inaccurate.
Trading in Hyflux shares is currently suspended.