SM Investments, a consortium between Indonesian-based conglomerate Salim Group and energy firm Medco Group, has agreed to take a 60% stake in bankrupt Hyflux.

SM Investments will subscribe for ordinary shares representing 60% of enlarged issue share capital for S$400m and extend Hyflux a shareholder’s loan of a principal amount of S$130m. Furthermore, SM Investments will grant a loan of $30m to supply the Hyflux’s initial working capital requirements.

Once the deal is completed, SM Investments will end up owning 60% of equity in Hyflux.