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Hyflux Tuaspring Sale: Sembcorp, Keppel, YTL Interested

SINGAPORE, Singapore

Singapore corporations Sembcorp and Keppel, and Malaysia's YTL, are understood to be among those interested in acquiring Hyflux's flagship Tuaspring desalination facility in Singapore. The plant is the largest in Southeast Asia with an estimated value of over $1 Billion USD. Hyflux is undertaking a major restructure to alleviate cash challenges.

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."

Citing “prolonged weakness” in Singapore’s power market that has led to “short-term liquidity constraints”, Hyflux appealed to the High Court in May for a 6-month moratorium against creditors to enable a more orderly reorganization of businesses and liabilities. In June the request was granted with the proviso that the company provide an update of its reorganization plans at the three-month mark and hold a status conference two weeks after that.