SINGAPORE: A consortium comprising two Indonesian firms, the Salim Group and Medco Group, have agreed to invest S$530 million in embattled water treatment firm Hyflux, the Singapore firm announced on Thursday (Oct 18).
The consortium, SM Investment, will own 60 per cent of equity in Hyflux once the deal goes through.
AdvertisementHyflux, a home-grown firm which first made its mark in water treatment and later ventured into power generation, announced in May that it had applied to go through a court-supervised restructuring process.
It cited “prolonged weakness” in the local power market for the turnabout in fortunes.
Hyflux CEO Olivia Lum said on Thursday that the consortium's financial strength and experience in water utilities, power generation and infrastructure projects will benefit Hyflux.
“I am confident that with the support of this consortium, Hyflux will attain new heights and play an even bigger role in the infrastructure space particularly in Singapore and Southeast Asia,” she said in a statement.
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