Hyflux gets $530 mil lifeline from Indonesia's Salim and Medco groups

Hyflux gets $530 mil lifeline from Indonesia's Salim and Medco groups

Samantha Chiew
18/10/18, 06:01 pm

SINGAPORE (Oct 18): Two of Indonesia's largest companies have come to the rescue of Hyflux which is saddled with some $2.95 billion worth of debt as at end-March.

SM Investments, a consortium made up of The Salim Group and the Medco Group, will invest $530 million in the water-treatment and power company.

Under a scheme of arrangement, SM Investments will acquire an enlarged 60% stake in Hyflux for $400 million, while granting it a shareholder’s loan of $130 million.

On top of that, SM Investments will grant Hyflux a $30 million loan for the interim working capital requirement of the company for the period before the completion of the investment.

The Salim Group, founded by tycoon Anthoni Salim, is one of the largest conglomerates in Asia and also controls Pacific Light Power, an 800MW power genco in Singapore.

Founded by Arifin Panigoro, the Medco Group comprises, among others, PT Medco Energi Internasional Tbk (MEI), an integrated energy and natural resources company which operates the West Natuna Transportation System Pipeline that delivers gas to Singapore,

Olivia Lum, founder of Hyflux who will lose majority control of the company if the deal goes through, says, “This is an investment from SMI directly into Hyflux. If this restructuring is successful, then we will [keep] all the assets to be in the group. In other words, we will not attempt to sell any more asset.”

“Today is a happy day. We are together. Subsequently, we have a lot of things to do [and] we will leave it to the investors and advisors to work out a plan. [But] we will not able to let you know [our plans] today, as they have mentioned, we want everything intact. Going forward, we still have to engage with lenders and authorities to get clearance,” adds Lum.

Lum also forsees Indonesia potentially being another big market for Hyflux to work with. “There are so much we can do there... desalination and wastewater treatment opportunities. This is not just a lifeline but it is also going to grow the company,” she says.

Lendlease a step closer to listing of mall REIT on SGX: reports

SINGAPORE (May 23): Australia’s Lendlease could potentially be the next REIT to list in Singapore, following the footsteps of two recent US REITs. According to The Australian, Lendlease has appointed investment banks Citigroup and DBS to handle the listing. The Singapore trust, to be named Lendlease Global Commercial REIT, could be seeded with shopping centre assets worth A$1 billion ($948 million). Listed on the Australia stock exchange (ASX), Lendlease is a integrated construction, engineering and property company. Singaporeans may also be familiar with Lendlease given the comp....

China defence minister to attend summit amid rising US tension

(May 22): Chinese Defence Minister Wei Fenghe will address top diplomats at an upcoming summit in Singapore in a speech that could be pivotal amid rising tensions between the US and China. The International Institute for Strategic Studies (IISS) announced the late addition Monday to a roster of ranking officials that includes US Acting Secretary of Defence Patrick Shanahan attending the three-day IISS Shangri-La Dialogue from May 31. Wei is scheduled to deliver a speech on China’s place in the Indo-Pacific region on the final day of the conference and will take questions afterwards, wh....

SingHaiyi reports 48% rise in 4Q earnings to $9.7 mil on higher margins from US development

SINGAPORE (May 22): Property developer SingHaiyi Group reported a 47.6% rise in 4Q19 earnings to $9.7 million from a year ago, bringing FY19 earnings to $22.6 million, 20.3% lower than a year ago. Revenue declined 67.6% to $9.8 million from a year ago mainly due to the decrease in revenue recognised for the group’s completed Executive Condominium project, The Vales, and the group’s completed private condominium, City Suites. The lower topline was partially offset by the sales of the group’s completed commercial condominium project in the United States – Vietnam Town Phase II, whi....