SIAS urges Hyflux' suitors to offer for P&P holders
None of the new potential investors has proposed offers for P&Ps yet.
The Securities Investors Association (Singapore) (SIAS) expressed that it will not support any potential investments in the embattled water treatment firm Hyflux which do not propose to resolve the company's debts to preference shares and perpetual securities (P&P) holders, a press statement revealed.
Between Pison Investments and Unilegend Investments, no offer have been put on the table for P&Ps yet from any of the new potential investors.
Aqua Munda had said that it will be making an offer to the P&P holders, but SIAS has yet to receive the terms of any such offer. With that, SIAS urged the investor to table its offer for the P&P holders at the earliest opportunity and before 27 July.
The only offer on the table for the P&P Holders as of yet is the recent revised offer from Utico. However, the association expressed concerns on the offer, such as how P&P Holders will no longer be given a choice to elect between an upfront and a deferred payment option.
“SIAS is concerned as the cut-off mark of $10,000 between small P&P holders and large P&P holders is arbitrary, and may be prejudicial to the large P&P Holders who would be forced to take the shares of Utico and Hyflux without knowing the true value of these shares and without any certainty that the relevant Utico entity would successfully achieve listing status on a recognised stock exchange,” SIAS president and CEO David Gerald said.
Further, SIAS found it unclear how the P&Ps can make an informed decision on the share component of the offer given that there has been an absence of detailed information including a formal valuation of the shares of the companies which are to be issued to them.
The detailed terms of the revised offer remain confidential. The Hyflux board has also not yet stated if they will abstain from voting on the offer, and it remains unclear whether there would be a release of claims against Hyflux directors under the offer.
“P&P holders should continue monitoring further announcements closely. That said, SIAS reassures P&P Holders that it continues to work with the relevant stakeholders to obtain clarity on the Revised Utico Offer and to assist the P&P Holders to make an informed decision on whether to accept the Revised Utico Offer,” Gerald said.