Hyflux sells stake in Indonesian firm for S$32 million

Selling of the shares in PT Oasis Waters International will give Hyflux which is undergoing restructuring a boost to repay payments.

The interior of a drinking water treatment plant

Water treatment company Hyflux Ltd has sold its 50% stake in an Indonesian firm for a sum of S$32 million. The sale of shares was done through Hyflux’s consumer products arm, Hyflux Consumer Products.

Selling of the shares - which totals a sum of 150,000 ordinary shares - in PT Oasis Waters International will give Hyflux which is undergoing restructuring a boost to repay payments due.

A portion of the sale proceeds will then be used as a loan via Hyflux’s consumer products to the main company for working capital purposes.

The deal was arrived "after arms' length negotiations and on a willing-buyer willing-seller basis after taking into account the rationale for the disposal,” the company said. The purchaser of the shares is an investment company based in Hong Kong.

“The decision was made to undertake the disposal as part of the company’s efforts to streamline its business activities and to re-focus on its core activities in the infrastructure sector,” said Hyflux.

Last month, Hyflux received a S$400 million equity investment from SM Investments, a consortium between Salim Group and Medco Group to help finance its restructuring and debt problems. The deal also includes two separate loans: a shareholder’s loan of S$130 million and a debtor-in-possession loan of S$30 million.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer