Hyflux

[AQ.]

Here comes the domino chain:

https://asia.nikkei.com/Business/Energy/...-Singapore

"SINGAPORE -- Struggling Singaporean utility Senoko Energy is requesting a rescue package of lending and other support from the government to ride out a supply glut expected to persist for a few more years.

Senoko has asked to borrow an estimated 100 million to 200 million Singapore dollars ($73 million to $146 million).
"With the severe business outlook for the next year or two creating the risk of a shortage of operating capital, the utility is battening down the hatches," said an official at Marubeni, the Japanese trading house that acquired Senoko with four partners more than a decade ago.

Senoko is also lobbying for the government to create a system that guarantees an assured revenue stream under long-term contracts, regardless of power plant utilization.
Singapore's energy supply has outstripped demand. To diversify sources, the government in 2010 began offering preferential measures for facilities fired by liquefied natural gas. This spurred launches of new power stations, starting in 2013, and the industry's supply capacity is now double the city-state's peak demand. Proceeds from electricity sales are not enough to cover costs for fuel, maintenance and financing. Overcapacity is expected to continue until around 2022.

Senoko was bought for SG$3.65 billion in 2008 by Kansai Electric Power; Kyushu Electric Power; the Japan Bank for International Cooperation; Marubeni; and French company GDF Suez, now Engie. The Singaporean company slipped into the red in 2016, and its net loss widened to about SG$400 million in 2018.

Senoko refinanced SG$2.1 billion in loans this May. An agreement was also made for certain shareholders to provide more cash in the event of a funds shortage, according to a source close to the matter."

[BRT]

Senoko Energy clarifies that it does not need more Government funding in ‘foreseeable future’
https://www.channelnewsasia.com/news/bus...g-12106380

Senoko Energy clarifies it does not need government financial aid
https://www.businesstimes.com.sg/energy-...ancial-aid

The company spokesman told The Business Times (BT) this week that the utility firm does not need further government aid, given that it achieved positive cash flow in fiscal 2018 and also recently refinanced.

Some power generation companies in Singapore including Senoko had earlier explored with the industry regulator, the Energy Market Authority (EMA), the possibility of loan facilities to help sustain and grow the power generation industry, according to the spokesman.

fake news previously? or at least very misleading news.

[BRT]

Hyflux inks S$400m rescue deal with Utico
https://www.businesstimes.com.sg/compani...with-utico

Meanwhile, each holder of Hyflux preference shares and perpetual securities (PNP) can choose from two options under the schemes.

The first option is to receive an upfront cash payment that is the lower of S$1,500 or 50 per cent of their holdings each. The total principal amounts payable under this option will be capped at S$50 million.

The second option for PNP investors is to receive a cash amount that is the lower of S$1,500 or 50 per cent of their holdings each, but the latter will be paid out over two years in five equal instalments with a yearly interest of 1.25 per cent.

PNP investors who choose the second option will also receive an additional cash payout. If shares of Utico or an affiliate are listed within two years of the transaction’s completion date, this additional payout will the higher of either the cash equivalent of 4 per cent of issued shares at the listing price or S$50 million. If such listing does not occur within the two years, the additional payout will be S$50 million.

[specuvestor]

Hyflux inks S$400m rescue deal with Utico
https://www.businesstimes.com.sg/compani...with-utico

Meanwhile, each holder of Hyflux preference shares and perpetual securities (PNP) can choose from two options under the schemes.

The first option is to receive an upfront cash payment that is the lower of S$1,500 or 50 per cent of their holdings each. The total principal amounts payable under this option will be capped at S$50 million.

The second option for PNP investors is to receive a cash amount that is the lower of S$1,500 or 50 per cent of their holdings each, but the latter will be paid out over two years in five equal instalments with a yearly interest of 1.25 per cent.

PNP investors who choose the second option will also receive an additional cash payout. If shares of Utico or an affiliate are listed within two years of the transaction’s completion date, this additional payout will the higher of either the cash equivalent of 4 per cent of issued shares at the listing price or S$50 million. If such listing does not occur within the two years, the additional payout will be S$50 million.

Little-known Aqua Munda Pte, which was just incorporated in Singapore on Tuesday, made the offer to buy S$1.8 billion ($1.3 billion) of debt from Hyflux noteholders and unsecured creditors, according to an exchange filing. The firm is backed by a well-funded investor group from the Gulf region, according to people familiar with the matter.

The surprise offer comes just weeks after crisis-hit Hyflux entered a restructuring pact with Middle Eastern utility Utico FZC.
-Bloomberg

Wonder if they are linked to Utico

[Shiyi]

Hyflux inks S$400m rescue deal with Utico
https://www.businesstimes.com.sg/compani...with-utico

Meanwhile, each holder of Hyflux preference shares and perpetual securities (PNP) can choose from two options under the schemes.

The first option is to receive an upfront cash payment that is the lower of S$1,500 or 50 per cent of their holdings each. The total principal amounts payable under this option will be capped at S$50 million.

The second option for PNP investors is to receive a cash amount that is the lower of S$1,500 or 50 per cent of their holdings each, but the latter will be paid out over two years in five equal instalments with a yearly interest of 1.25 per cent.

PNP investors who choose the second option will also receive an additional cash payout. If shares of Utico or an affiliate are listed within two years of the transaction’s completion date, this additional payout will the higher of either the cash equivalent of 4 per cent of issued shares at the listing price or S$50 million. If such listing does not occur within the two years, the additional payout will be S$50 million.

Little-known Aqua Munda Pte, which was just incorporated in Singapore on Tuesday, made the offer to buy S$1.8 billion ($1.3 billion) of debt from Hyflux noteholders and unsecured creditors, according to an exchange filing. The firm is backed by a well-funded investor group from the Gulf region, according to people familiar with the matter.

The surprise offer comes just weeks after crisis-hit Hyflux entered a restructuring pact with Middle Eastern utility Utico FZC.
-Bloomberg

Wonder if they are linked to Utico

Aqua Munda is reported to be related to Bambang Sugeng Kajairi.
He is also the chap that has recently subscribed a big chunk of shares in Addvalue and become the largest shareholder.
Does anybody know who he is?

[Behappyalways]

What are the lessons from the Hyflux haircut?
https://www.theedgesingapore.com/views/d...ux-haircut

[dreamybear]

What are the lessons from the Hyflux haircut?
https://www.theedgesingapore.com/views/d...ux-haircut

Thanks, it is a good layman read for non-finance people like me.

But kudos to buddies like yourself and several others who have already mentioned the issues from the article(post #523), although at that time, it was still too chim for me to understand. 

For the benefit of the less-accounting-savy buddies like me, referencing Hyflux AR2017, the perpetual portions  are mentioned on :
1. Notes to Fin Statements
1.1 pg 77 : No. 3.3 - SIGNIFICANT ACCOUNTING POLICIES (CONT’D) / Financial instruments (cont’d) / Share capital and perpetual securities classified as equity
1.2 pg 110 : No.18 - PERPETUAL SECURITIES

Now, I am also a bit worried abt my other investments, I don't really read ARs back to back !

[dreamybear]

Sias calls for greater transparency from Aqua Munda in its funding, intentions for Hyflux restructuring
Published 30 Dec 2019

......Aqua Munda has invited the embattled water treatment firm's note holders and unsecured creditors to tender offers for their debts to be purchased at a minimum discount of 85 per cent.......

Most of the queries raised by Hyflux's creditors relate to the identity of Aqua Munda and its director and sole shareholder, Singaporean businessman Bambang Sugeng Kajairi, and whether the company has the necessary funds to complete its proposed reverse Dutch auction, he noted.

A reverse Dutch auction is where the bids offering the highest discounts will be accepted first, until a set pool of funds has been completely used up.......

https://www.straitstimes.com/business/co...ts-funding

[AQ.]

Well, that puts an end to part of the Hyflux saga.
IMO, YTL is making a very good buy. 

https://www.theedgemarkets.com/article/y...plant-rm1b

"YTL Power International Bhd (YTLP) has entered into a put and call option agreement for the acquisition of a power plant and associated assets of Tuaspring Pte Ltd for a total consideration of S$331.45 million (around RM1 billion).
In a filing with Bursa Malaysia yesterday, YTLP said the S$230 million of the purchase consideration will be settled in cash and S$101.45 million in ordinary shares and loan notes amounting to 7.54% of the post-acquisition equity in YTL Utilities (S) Pte Ltd.
It said the assets comprise a land lease on a site at 90 Tuas South Avenue 3, Singapore, with a 20-year remaining term and the 396mw combined cycle power station, stocks and associated assets."

[Shiyi]

Strange. No announcement from Hyflux on this deal.
Could it have been done between YTL and Maybank? The bank has the first claim on the asset as it's secured loan.