Hyflux Ltd’s Board of Directors disclosed that Qurayyat Desalination SAOC, its subsidiary company incorporated in the Sultanate of Oman, has boosted its share capital as part of the project financing requirements of the Qurayyat Independent Water project. An issue and distribution of an additional 9,958,000 shares at OMR1 (US$2.60), bringing the share capital from OMR 1,500,000 (US$3,896,103) to OMR 11,458,000 (US$29,761,038).
Currently, Hyflux holds 85 per cent of Qurayyat’s shares through wholly-own subsidiaries Hyflux International Pte Ltd and Hyflux Utility (Oman) Pte Ltd. With the OMR 8,464,300 (US$21,985,184) injection from Hyflux Utility (Oman), the organisation’s total investment in Qurayyat has gone up from OMR 1,275,000 (US$3,311,688) to OMR 9,739,300 (US$25,296,883). There will be no alternations in the proportions of shareholding by Hyflux and Modern Channels Services LLC (MCS) respectively.
Hyflux formed Qurayyat as a subsidiary for the development of the Qurayyat Independent Water Project, a seawater reverse osmosis desalination facility in Qurayyat. Located in the Muscat governorate in the Sultanate of Oman, it is Hyflux’s largest desalination project in the nation. Under the terms of the water purchase agreement, the desalinated water produced from this project will be handed over to the Oman Power and Water Procurement Company SAOC for two decades, from 2017 to 2037. This adds 200,000m³ of drinking water a day to the nation’s water supply.
As the injection has been bankrolled by internal resources, it is not predicted to have any repercussions on the consolidated net tangible asset value per share and earnings per share for Hyflux for the financial year ending on 31st December 2017.
None of the substantial shareholders or Directors of Hyflux have any direct or indirect interest in the injection, except for their shareholdings in the organisation.