Sembcorp’s solitary offer for Tuaspring falls short of book value

Sembcorp has emerged as the only bidder for Hyflux’s Tuaspring integrated power and water plant with an offer that undercuts the plant’s book value, reports Business Times of Singapore.

The 318,500 m3/d desalination plant and 411 MW power generation facility was flagged for sale by Hyflux in July 2018, after the company agreed a process for the divestment with its creditor Malayan Bank.

The deadline for a binding agreement was set for 29 October 2018.

Business Times of Singapore reports that Sembcorp and Keppel Corporation were the only two potential buyers to be granted approval to bid by Singapore’s Public Utilities Board (PUB).

Sembcorp’s offer is reportedly below the plant’s book value, and therefore falls short of the sum required to repay Malayan Bank. 

Hyflux has been exploring options to reorganise its business and liabilities since May 2018, when it requested a moratorium from the High Court of Singapore on actions against five of its subsidiaries.