Utico’s move to replace cash offer with stocks a ‘bombshell’ for Hyflux retail investors: SIAS

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SINGAPORE: The proposal by United Arab Emirates utility firm Utico to replace all cash payments for Hyflux creditors with stocks of both companies ...

READ: COVID-19: Hyflux gets green light from High Court to postpone scheme meetings, extend debt moratorium

For these reasons, said Utico, all cash considerations it had earlier offered would now be replaced with Utico and Hyflux stocks. Under the earlier rescue deal, S$250 million in cash was to be paid to unsecured creditors such as banks and medium-term noteholders, while S$100 million was to be set aside for P&P holders.Among other conditions, Utico noted that its new proposal was contingent on “immediate approval and action by Hyflux to transfer all project agreements and shareholding of Hyflux project companies in Algeria, Oman, which are to be transferred to Utico on board approval with no delay”.

He also wanted to know if P&P holders would get to choose between an upfront option and a deferred option where shares would be issued over a period of time. If yes, what would the offer for each option entail and would security be provided for each distribution under the deferred option, he asked.

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