Date: January 17, 2019
There is much expectation from the Hyflux investors, some 50,000 of them, that they will be advised at tomorrow’s townhall meeting as to how they can recover their investments in Hyflux. There have been discussions between the company and the investors some six months ago at a townhall meeting arranged by SIAS. At that time, the company was searching high and low for an investor or investors to inject capital to enable the company to survive. The company has found an investor. It is a fact that all creditors need to be satisfied that the company has done its very best to meet the expectations to the best of their ability. The 50,000 retail investors are anxiously waiting for the final outcome.
Whilst SIAS is indeed happy that an investor has come forward to invest in the company, investors rightfully expect that the company has done the necessary due diligence to ensure that the best deal is achieved for them. Ever since the announcement of the interest shown by Salim Group, the Hyflux retail investors are expecting to hear from the company tomorrow to what extent they can recover their investments and on what terms and within what period.
Going by the recent other successful restructuring exercises, the affected investors have also seen the majority shareholder providing capital to some extent to demonstrate alignment of interest with the investors. As SIAS understands, Hyflux investors would like to hear from the Hyflux majority shareholder as to what sort of involvement there will be, if any, from her in this restructuring exercise and if not, why not? Monies or equity provided by the majority shareholder alleviated hardship to some extent in the other restructuring exercises. In this way, it would appear that all concerned are working together to save the company.
SIAS, therefore, hopes on behalf of all the affected investors that the company will address the current concerns of all stakeholders at tomorrow’s townhall meeting and be fully transparent.
David Gerald J