Utico has so far submitted draft term sheet, not binding offer: Hyflux
Singapore
NO BINDING offer to invest in Hyflux has been submitted by Utico, Hyflux said on Tuesday, contrary to a Reuters report s published over the weekend.
In the report dated May 12 and titled "UAE's Utico submits binding offer to invest in Hyflux: CEO", Utico's chief executive Richard Menezes told 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 advisors 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 advisors are currently engaged in active discussions with Utico's advisors to finalise the proposed terms of Utico's investment," Hyflux said.
Its advisors 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, while Maybank had lent Hyflux money to build it, secured against the value of the plant.
