Singapore Corporate News - 12 Oct 2007

Hyflux to list trust of 13 China water plants on SGX

HYFLUX, Singapore's biggest listed water-treatment company, will float what is likely to be the world's first pure-play water business trust on the Singapore Exchange (SGX) by the end of this year, it said yesterday.

Wire reports, quoting unnamed sources, said that the trust will be worth over $100 million. Hyflux Water Trust (HWT) will start off with 13 of its parent company's 25 plants in China. The 13 plants will have a total daily capacity of 445,000 cubic metres.

Seven of these plants will already be operational when the trust is listed, while the remaining six are expected to start operating by end-2008, Hyflux said.

By end-2009, all 25 plants will be part of the trust, said Sam Ong, Hyflux's new chief financial officer (CFO).

Hyflux will remain HWT's single largest shareholder once the trust is listed, Mr Ong said. It intends to hold a stake of between one-quarter and one-third in the trust.

Hyflux has also given the right of first refusal for all its water assets to HWT.

In addition to this, HWT will also look at third-party assets, Mr Ong said. The trust will mostly target plants that are worth at least $30 million each.

HWT's initial focus will be on China. But for the longer term, it will focus on other high-growth markets such as India, the Middle East and North Africa as well.

Hyflux, which declined to put a value to HWT's portfolio because of regulations, said that the trust will allow Hyflux to achieve its asset-light strategy.

HWT will unlock value for Hyflux's shareholders, allow the company to move faster on new projects and also take on more projects at one time, chief executive Olivia Lum said.

Swiber buys 4 ships for US$108m

SWIBER Holdings has stepped up its fleet expansion programme with the acquisition of four new vessels for US$108 million. The marine group said yesterday that wholly owned subsidiary Kreuz Engineering has acquired two sub-sea support vessels and two deepwater anchor handling tug/supply (AHTS) vessels from Thaumas Marine. The purchase amount does not include the cost of equipment that Swiber will retrofit or purchase for the vessels.

The acquisition will be financed by proceeds raised from the successful completion of the group's recent bond offering and sale and leaseback arrangement.

With the addition of the four new vessels, Swiber's fleet of offshore marine vessels will be increased to 41 by the beginning of FY2010.

Swiber said that the vessel purchase underscores the growing demand for its offshore oil and gas services. As at June 30, 2007, its outstanding order book, including letters of intent, stood at US$218.7 million.