Does Hyflux deserve a comeback like OSIM?
Can Hyflux stage an incredible comeback like OSIM? Or rather, does Hyflux even deserve to be rescued? The embattled water treatment specialist has obtained a court protection to restructure its outstanding debts. It has also stopped payment of distribution on its $500 million 6.00% Perpetual Capital Securities which was due on 28 May 2018. The swift turn of events caught shareholders by surprise and marked a treacherous chapter for Hyflux.
Under current circumstances, investors who pumped in their hard-earned monies on the shares and perpetual bonds have every right to be angry with the management of Hyflux. How on earth did the former A-list company end up in such a sorry state is beyond me.
Whether Hyflux can emerge stronger and leaner from this embarrassing fiasco remains to be seen but the corporate drama is so bad that its good, at least from my perspective. When this counter reopens in six month time, investors should ask themselves whether they should run for their lives or risk throwing good money after bad.
I wish I did not have to write this but those who are vested in Hyflux shares or bonds should hope for the best but expect the worst. Check out the other articles written on the Hyflux saga:
Sembcorp Industries should invest in Hyflux Ltd
The holy water of Hyflux Perpetual Securities
Lack of focus
For a start, it certainly seems like Hyflux CEO bites off more than she could chew when she takes on so many board memberships through the years. As recent as 22 May 2018, she was an independent non-executive director with ST Engineering. Currently, she is board member of International Enterprise Singapore, UBS Unique Advisory Board, Chinese Development Assistance Council and Singapore Business Federation. Apart from these commitments, she was also a former Nominated Member of Parliament.
Being the Chairman and CEO of Hyflux, one would question whether [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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