Sembcorp, Keppel, YTL eyeing Hyflux plant, Companies & Markets News & Top Stories
Blue-chip firms Sembcorp Industries, Keppel Corp and Malaysian power generator YTL Power International are reportedly among 22 possible buyers of Hyflux's Tuaspring - a desalination plant with a book value of about $1.47 billion.
An acquisition would be a huge boost for the cash-strapped water-treatment and power company.
Asset sales are now key for the company, which had $2.95 billion worth of liabilities as of March 31. Of that amount, $900 million is debt owed to perp and preference shareholders.
Last month, the company said it was in touch with eight bidders, but had yet to receive any firm offers.
Citing sources, Bloomberg reported on Thursday that Sembcorp, Keppel and YTL Power were eyeing the Tuaspring project, which includes South-east Asia's largest desalination plant.
Hyflux chief executive Olivia Lum noted last month: "We all know that under these conditions when the power market is weak, it is very difficult to get good value.
"But it also cannot be so unreasonably low that I can't even pay my stakeholders."
Total value of liabilities for Hyflux, as of March 31. Of that amount, $900 million is debt owed to perp and preference shareholders.
The sale speculation came as Hyflux, which expects net cash outflow in the short to medium term, said 22 potential rescue financiers had signed non-disclosure agreements.
It is not known how many submitted expressions of interest by yesterday's deadline.
The firm and its advisers have held preliminary talks with 15 of these potentia....