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.