Hyflux ltd., has supported a plan proposed by Strategic Growth Investments LLC to acquire and privatize it in a transaction that would include a cash injection of $154 million. The water treatment company will work with SGI, to facilitate the adoption and implementation of this proposal by the various stakeholders on a timely basis.
Hyflux’s debt includes bank loans and bonds held by 34,000 retail investors. Despite being approved by multiple suitors, the company has failed to reach an agreement and has sought several extensions on its debt moratorium.
Under the proposal, SGI would pay S$155 million to certain creditors, set aside S$53 million under Hyflux’s control for contingent claimants and would provide S$60 million for working capital. The deal also includes newly issued equity and convertible securities.
The term sheet is valid for 60 days upon which time a binding letter of intent will be issued and signed by all the related parties. SGI aims to close the deal within 60 days of execution of the letter of intent, it said.