Hyflux says Utico's offer of part cash redemption to PNP investors only 'exploratory in nature'

WITH the May 29 High Court hearing on the moratorium of Hyflux just a day away, the debt-ridden firm on Tuesday clarified that Utico's purported rescue deal to offer "part cash redemption" to retail perpetual and preference shareholders (PNP) is merely "exploratory in nature", and "currently being contemplated" by Utico. 

BT previously reported that Utico chief executive Richard Menezes said in a statement on Sunday that the Emirati utilities group has at a recent meeting with Hyflux offered "part cash redemption and also a hope for full redemption with a plan and exit option".

Mr Menezes was quoted as saying: "Full details can only be revealed later, but as part of the overall deal, small investors of up to S$2,000 to S$3,000 could get 50 per cent cash redemption along with full redemption opportunity while the rest of the investors could get a similar but staggered and cascade deal."

But on Tuesday, Hyflux said it wanted to clarify that the meeting "entailed no conclusive numbers or percentages, or indeed any binding agreement, whether in respect of the PNPs or any other stakeholder groups". 

The meeting was attended by Hyflux, Utico representatives, the Securities Investors Association (Singapore), as well as the respective advisers to Utico, and the informal steering committee for PNPs. 

Hyflux added that it is in continued talks with several potential investors, including Utico, and that material developments have been announced on SGXNet as appropriate.

As at May 14, the company had not accepted or entered into the term sheet received from Utico advisers on May 6.

"This position has not changed," Hyflux said. 

It also urged investors to rely on information provided by the company in its disclosures to the Singapore bourse, and said it will make appropriate announcements as and when there are any further material developments.