As an indication of the investor’s good faith, Oyster Bay Fund is prepared to purchase preference and ordinary shares in HyfluxShop Holdings from the company for up to $26 million, which the Hyflux understands from the investor is to be used as working capital.
Embattled water company Hyflux is in a race against time to find a new investor after an earlier restructuring agreement it had signed with potential suitor Salim-Medco Investments (SMI) last October lapsed.
See: Hyflux races to find new investors as time for moratorium runs out
On May 3, Hyflux announced it had received a non-binding letter of intent from new suitor and UAE-based investor Utico FZC for a possible injection of $400 million. Utico is said to have a reputable track record in the water and power industries. Its shareholders include sovereign institutions of the governments of Oman, Saudi Arabia, Bahrain and Brunei.
In its Friday night filing, Hyflux says the Oyster Bay Fund’s LOI will automatically terminate if a judicial manager or liquidator is appointed over the company.
Hyflux also says it will continue to engage with other parties who have expressed an interest to invest in the group’s business and assets, “with priority afforded to the parties with the willingness and ability to provide interim funding and reach a binding agreement with the company within the shortest possible time”.
