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The Week in Numbers: Hyflux Ltd Restructuring Updates

If you are one of the many retail investors who bought Hyflux Ltd’s (SGX: 600) perpetual securities, there might finally be a glimmer of good news. Holders of perpetual securities and preference shares, who are owed S$900 million, will receive a total of S$27 million in cash and 10.26% of the company from the company’s restructuring plan.

Hyflux’s total debt amounts to S$3 billion, with $900 million owed to about 34,000 holders of perpetual securities and preference shares. Its unsecured bank creditors, contingent creditors and medium-term noteholders are owed S$717 million, S$915 million and S$271 million respectively.

Under the proposed plan, unsecured creditors will receive 27% of shares post-re-organisation and a total of S$232 million in cash.

Hyflux chief executive Olivia Lum said that she and other board members who also own perpetual securities intend to contribute the distributions that they would have received as well as ordinary shares back into the pool of assets for redistribution.

Lastly, ordinary shareholders of Hyflux will receive just 2.74% of shares in total under the restructuring plan. 60% of Hyflux’s share capital, after re-organisation, will go to SM Investments, which has agreed to invest S$530 million in the company.

Gojek is seeking to raise another US$2 billion in additional capital from new investors, which would take the total haul from the current round to US$3 billion. Gojek has already raised just over US$ 1billion at the ongoing Series F round, with Mitsubishi Corp, Provident Capital, Google, and Tencent Holdings among the investors.

Gojek is intensifying its fight against larger Singapore-based rival Grab. Grab said last month it raised more than US$3 billion in 2018 as part of its Series H financing round.

Starhub Ltd (SGX: CC3) is cutting its 2019 dividends from four cents per quarter in 2018, to at least 2.25 cents per quarter in 2019, in a variable dividend policy. Starhub posted a net profit of S$201.5 million in 2018, down 26.2% from a year ago.

Meanwhile, Singapore’s economy expanded by 3.2% in 2018, slowing from 3.9% growth in 2017. The Ministry of Trade and Industry has maintained its 2019 growth forecast at 1.5 to 3.5%. In the last quarter of 2018, the Singapore economy inched up by 1.9% from the same period last year and 1.4% from on a quarter-on-quarter seasonally adjusted annualised basis. Goods-producing industries grew 5.0%, while services-producing industries increased by 3.0%.

Lastly, in a bizarre move, President Trump declared the southern border of the United States to be a national emergency as he seeks to fulfil a campaign promise to build a wall on the US-Mexico border. He is trying to use the designation to redirect taxpayer money to build the 230-mile barrier. According to the White House, it plans to use US$8 billion to create new fencing on the border.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Jeremy Chia own shares in Tencent Holdings Ltd. The Motley Fool Singapore has recommendations for Tencent Holdings Ltd and Inc.