Singapore firm Hyflux Ltd announced that its wholly-owned subsidiary, Hyflux Consumer Products Pte Ltd (Hyflux Consumer) has entered a Joint Venture Agreement with PT Gunawan Sejahtera. Under this agreement, Hyflux Consumer has proposed the acquisition of 50% equity interest of Indonesian bottled water company, PT Oasis Waters International (PT Oasis). A total of SGD 50 million (USD 35.3 million) will be put forth by Hyflux Ltd for the purchase.
The move follows earlier announcements to enter the solid waste market after signing a services agreement with Mitsubishi Heavy Industries to develop Singapore’s sixth waste to energy project, and a plan to acquire 30% of Hungarian bottled water supplier, Kaqun Europe Zrt, for USD 8 million.
Event photograph from the Joint Venture Agreement Signing Ceremony
L to R: Ms Lim Suat Wah, Group Executive Vice President/ Chief Financial Officer of Hyflux Ltd, Ms Olivia Lum, Executive Chairman/Group Chief Executive Officer of Hyflux Ltd, Mr Alfi Gunawan, Director of PT Gunawan Sejahtera and Chief Executive Officer of PT Oasis Waters International and Mr Nathaniel Gunawan, Director of PT Oasis Waters International
PT Oasis manufactures, sells, markets and distributes bottled drinking water in Indonesia, with revenues of IDR 700 billion (USD 51.6 million), growing at 36% year on year. In a statement, Hyflux Ltd said that it sees “increasing opportunities in the consumer segment” due to a growing middle class population and that “PT Oasis will contribute not only to the future earnings of the Group but also provide an immediate distribution platform in Indonesia for Hyflux consumer products”.
Upon completion of the acquisition, Net Tangible Assets per share and Earnings per share are expected to increase from 38.69 to 39.29 and 1.65 to 1.76 respectively.
