Singaporean water treatment firm Hyflux Ltd announced that Indonesian noodle producing to flour milling company Salim Group and Medco Group had agreed to acquire 60 percent of the company for S$400 million ($290 million).

The new joint venture (JV) called SM Investments Private Limited has also agreed to give Hyflux a loan of $94.2 million.

Hyflux said that the investor was identified by the company through a competitive bidding process undertaken by the company as part of its restructuring plans, adding that the investors would also give it a $21.7 million loan ahead of the proposed equity investment to meet its working capital requirements.

Medco Group said that with the investment, it expects to unlock the full potential of Hyflux.