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SINGAPORE — YTL Power International announced the completion of the acquisition of Hyflux’s Tuaspring power station by its wholly-owned subsidiary, YTL PowerSeraya, for S$270 million.
The Malaysia-based international utility group said that the original purchase consideration was S$331.45 million, which was initially to be settled with a combination of cash, shares and shareholder loans in a holding company of YTL PowerSeraya, was reduced to a purely cash consideration of S$270 million on completion.
“Tuaspring’s combined cycle power station complements the group’s existing power generation assets in Singapore, creating significant synergies across our portfolio of utility businesses,” Yeoh Seok Hong, managing director of YTL Power, said in the statement on Wednesday (1 June).
“The Tuaspring plant is one of the most technologically advanced assets on Singapore’s power generation grid and this was a sound opportunity to acquire a well-structured, operating asset with a proven operational track record, enabling us to consolidate our power generation capacity in Singapore,” Yeoh added.
The power station was commissioned in 2016 and was originally constructed as part of a desalination project under a private-public partnership project with Singapore’s national water agency, Public Utilities Board (PUB) and Hyflux.
Hyflux won a tender for Tuaspring, Singapore’s second seawater desalination project and signed the water purchase agreement with PUB in April 2011. An integrated power generator was supposed to supply electricity to the desalination facility, with the excess sold to the national grid. However a severe oversupply in the power generation market made prices undesirably low and hit Hyflux’s finances.
Hyflux filed for a court-supervised financial restructuring in 2018 and defaulted on its debt payments. It was placed under judicial management in November.
The Tuaspring desalination plant was subsequently taken over by PUB in 2019.
In 2020, Singapore’s High Court ruled that Hyflux will come under judicial management with immediate effect. The firm’s judicial managers filed for an application to wind up the company in June 2021.
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