Hyflux liquidates Indonesian asset for $32 mil in race to restructure debt

Hyflux liquidates Indonesian asset for $32 mil in race to restructure debt

By: 
Michelle Zhu
20/11/18, 07:37 am

SINGAPORE (Nov 20): Hyflux has agreed to sell its 50% stake in PT Oasis Waters International, a manufacturer and distributor of bottled drinking water in Indonesia, for $32 million.

This is below Oasis Waters’ net tangible asset (NTA) value of $32.3 million based on the group’s unaudited financial results for 1Q18, representing a deficit of about $0.3 million in book value.

The liquidation move comes as part of the group’s efforts to streamline its business activities, and to re-focus on its core activities in the infrastructure sector, says Hyflux in a filing on Monday.

See: Embattled Hyflux in talks with investors

The group is currently also seeking to sell a possible strategic equity stake in Hyflux, in order to reorganise debt before its six-month debt moratorium expires next month.

Assuming the transaction was effective in Jan 2017, disposing of Oasis Waters means Hyflux’s net tangible assets (NTA) per share in FY17 would be cut to 125.4 cents from 125.6 cents – while loss per share would have increased to 22.04 cents from 21.79 cents.

The transaction would have brought FY17 gearing to 1.17 times instead of 1.20 times.

Trading in the shares and perpetual securities of Hyflux have been suspended since May this year. 

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