Utico to hold townhall next week for Hyflux PnP investors, noteholders

MIDDLE Eastern utility firm Utico will convene a townhall next week to address the concerns of investors holding Hyflux's medium-term notes and the perpetual securities and preference shares (PnP).

The Securities Investors Association (Singapore) will arrange the event, which will most likely be held on Jan 20, Utico said in a statement emailed to The Business Times on Tuesday.

The advisers for PnP investors and noteholders, as well as selected members of the press, will also be able to attend the townhall.

The event will aim to allay concerns about Utico's ability to deliver on its offer to the PnP investors, in particular the additional payout from the second of two options, the United Arab Emirates-based company said.

Utico on Tuesday also reiterated that all legal and financial advisory fees are capped at a total of S$40 million for the deal, under the definitive restructuring agreement signed in November last year. This will include the success fee of up to S$25 million payable to Hyflux adviser nTan Corporate Advisory, helmed by principal Nicky Tan.

"The Hyflux board must make a decision on its distribution against valid claims for all respective advisers," Utico said in its statement.

"Our (adviser) fees are capped as in the restructuring agreement. nTan's fees are decided by the Hyflux board," it added.