Saturday, February 23, 2019

Low enterprise value for Hyflux

An investor who followed the development in Hyflux closely asked me to point out the problem in getting a fair value for Tuaspring. The bidder needs to get approval from the Public Utilities Board (PUB) to have access to the confidential information needed for their due diligence. The approval took a long time. Finally, only 8 parties were interested to be pre-qualified and PUB only approved two parties. This has caused the value to be so low.

The outcome is quite unfair to the retail investors of Hyflux. They stand to lose 90% of the total sum of $900 million that they had invested in the preference shares and perpetual securities.

https://tklcloud.com/Feedback/feedback2.aspx?id=1129

No comments:

Blog Archive