Utico to hold Hyflux town halls on Jan 20

MIDDLE Eastern utility firm Utico has confirmed that both town halls for investors holding Hyflux's medium-term notes and perpetual securities and preference shares (PnP) will be held on Jan 20.

The town hall for medium-term noteholders will be held at Sheraton Towers at 12pm, while the town hall for PnP investors will take place at Suntec Convention Centre in the evening.

The Securities Investors Association (Singapore) has already arranged the events and notified all registered investors, Utico said in a statement on Thursday.

Utico chief executive Richard Menezes said the Emirati group was "the only white knight that has tried hard to think for these investors (who hold the notes and PnP) other than creditors too", and that this stand has been consistent from its entry as a white knight.

"Having said that, I would like to remind that Utico did not cause this situation. The noteholders invested in unsecured, unguaranteed securities for use in Hyflux's business," he said.

Utico is "willing to walk away" if noteholders or PnP investors vote against the deal, Mr Menezes said. He believes the town halls will help them make an informed decision.

In the same statement, Utico also noted that it has "nothing to do with" potential investor Aqua Munda. "Some doubts cast in this direction must be removed," Utico added. Aqua Munda is a Singapore-incorporated company that is offering to buy out the debts of Hyflux noteholders and unsecured creditors at a minimum discount of 85 per cent. Its surprise invitation was disclosed in December 2019.