Singapore firm Hyflux continues on its journey to diversify from its roots of municipal water treatment and is now proposing to buy half of an Indonesian bottled water company.
In a joint venture between its subsidiary Hyflux Consumer Products and partner PT Gunawan Sejahtera, the proposal is to acquire 50% equity interest of PT Oasis International.
PT Oasis manufacturers, sells, markets and distributes bottled drinking water in Indonesia, with revenues of IDR700 billion (US$51.6 million), growing at 36% year on year.
In a statement the Hyflux Group said that it sees “increasing opportunities in the consumer segment” 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”.
A total of SGD50 million (US$35.3m) will be put forward by Hyflux for the purchase.
Net tangible assets per share are expected to increase from 38.69 cents to 39.29 cents after the completion of the acquisition.
The move falls in line with a move away from municipal water treatment.
Earlier this month Hyflux announced it would be planning to acquire 30% of Hungarian bottled water supplier, Kaqun Europe Zrt for US$8 million.
At the end of October, the company announced a move into the solid waste market after signing a services agreement Mitsubishi Heavy Industries to develop Singapore’s sixth waste to energy project (watch newscast).
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