October 18, 2018 / 10:17 AM / a year ago

Singapore's Hyflux to sell majority stake to Indonesia's Salim Group, Medco Group

SINGAPORE, Oct 18 (Reuters) - Singapore water treatment firm Hyflux Ltd, which is undergoing a court-supervised reorganisation, said Indonesia’s Salim Group and Medco Group had agreed to acquire 60 percent of the company for S$400 million ($290 million).

The new joint venture called SM Investments Pte Ltd has also agreed to give the embattled company a loan of S$130 million, Hyflux and the two Indonesian firms said in a joint statement on Thursday.

“The investor was identified by the company through a competitive bidding process undertaken by the company as part of its restructuring plans,” Hyflux said.

Loss-making Hyflux had been seeking strategic investors to raise funds even as it negotiated with other parties to sell its Singapore-based Tuaspring, its combined desalination and power plant, to help pay creditors. Malayan Banking Bhd is the project’s main lender. ($1 = 1.3778 Singapore dollars) (Reporting by Fathin Ungku and Anshuman Daga; Editing by Amrutha Gayathri)

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