4/5/2019 ‘We have not lost faith’: Hundreds of Hyflux investors gather to express concerns at Hong Lim Park

erns at Hong Lim Park - CNA

Singapore
‘We have not lost faith’: Hundreds of Hyflux investors
gather to express concerns at Hong Lim Park
The investors were unhappy with Hyflux’s restructuring plan and PUB’s
decision to take back the Tuaspring water desalination plant at zero dollars.

Around 300 people - with many Hyflux retail investors among them -
gathered at Hong Lim Park on Saturday afternoon (Mar 30) to express
concerns regarding recent developments surrounding the embattled
water treatment firm. Deborah Wong reports.

By Amir Yusof
30 Mar 2019 08:04PM
(Updated: 30 Mar 2019 11:47PM)

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4/5/2019 ‘We have not lost faith’: Hundreds of Hyflux investors gather to express concerns at Hong Lim Park - CNA

SINGAPORE: Around 300 people - with many Hyflux retail investors among them
- gathered at Hong Lim Park on Saturday afternoon (Mar 30) to express concerns
regarding recent developments surrounding the embattled water treatment firm.

Many wanted to draw attention to their losses and to rally fellow investors to cast a
“no” vote for Hyflux’s restructuring proposal, which asks that perpetual securities
and preference shareholders accept a recovery rate of 10.7 per cent – roughly 3 per
cent in cash and 7 per cent in equity.

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Some were also unhappy with national water agency PUB’s intention to take over
Hyflux’s Tuaspring desalination plant at zero dollars and waive the compensation
sum it is entitled to, if the company does not remedy its defaults by Apr 5.

At around 3pm on Saturday, the crowd at Hong Lim Park stood around a makeshift
podium at Speaker’s Corner, using caps and umbrellas to seek relief from the
humidity.

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4/5/2019 ‘We have not lost faith’: Hundreds of Hyflux investors gather to express concerns at Hong Lim Park - CNA

Amir Yusof
@AmirYusofCNA

Dozens have gathered at the Speaker’s Corner to protest

against Hyflux’s restructuring plan and PUB taking over the
Tuaspring desalination plant at zero dollars

Here’s more details on the planned protest:

channelnewsasia.com/news/business/…
5 2:57 PM - Mar 30, 2019

See Amir Yusof's other Tweets

Some investors also placed posters and banners to indicate why they were unhappy
and expressed hope for Government intervention.

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Former Presidential Election candidate Mr Tan Kin Lian was the first to address
the crowd. Although he was not an investor, Mr Tan shared that he was aware how
some of them became Hyflux perpetual securities and preference shareholders
despite not being financially “savvy”.

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4/5/2019 ‘We have not lost faith’: Hundreds of Hyflux investors gather to express concerns at Hong Lim Park - CNA

“They were just ordinary investors wanting to have a reasonable rate of interest
without taking too much risk. If they wanted to take risk, they would have bought
shares," said Mr Tan, who donated funds to organise the protest event.

Former Presidential Election candidate Mr Tan Kin Lian speaking to Hyflux

protesters at the Speaker's Corner. (Photo: Amir Yusof)

Mr S H Lee, a perpetual securities and preference shareholder who was listening to

Mr Tan’s speech, told CNA that he was an investor who “did not have financial
knowledge” but made the investment because he placed a lot of faith in Hyflux and
regulators.

“I invested a significant amount of my retirement funds. I placed a lot faith in

Hyflux, and also because water is our strategic resource, I thought this
(investment) would give us sufficient funds to cover our expenses, our medical
needs, for the rest of our retirement years,” added Mr Lee.

ZERO DOLLARS MOVE "DOESN'T MAKE SENSE"

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4/5/2019 ‘We have not lost faith’: Hundreds of Hyflux investors gather to express concerns at Hong Lim Park - CNA

Mr Lee was also unhappy that PUB intends to take over Hyflux’s Tuaspring
Desalination Plant (TSDP) at zero dollars, as he said that his investment helped
built the plant.

“I believe a lot of money comes from us investors were used to first build the plant,
so you cannot just say okay, now I am going to take over for zero dollars. It doesn’t
make sense to me,” he added.

READ: PUB issues default notice to Hyflux's Tuaspring, says will

take over plant if defaults not resolved

READ: PUB’s default notice to Tuaspring complicates Hyflux’s

restructuring: SIAS, analyst

The organizer of the protest event, a perpetual securities and preference

shareholder who wished to be known only as Alex, told CNA that PUB should
compensate Hyflux investors “out of moral obligation” because the plant was still
“functional”.

“It’s not fair and not right to just take back at zero dollars,” said Mr Alex, adding
that he hoped for PUB to take back Tuaspring at "fair value" so that the investors
would get back some money.

An IT cybersecurity expert who declined to be named said that he invested around

S$15,000 in Hyflux in 2016, and maintained that he was hopeful that if investors
rejected the company’s restructuring proposal on Apr 5, they could pressure
authorities to start investigations into the firm.

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4/5/2019 ‘We have not lost faith’: Hundreds of Hyflux investors gather to express concerns at Hong Lim Park - CNA

A Hyflux protestor rallying the crowd to vote as one for the company's
upcoming restructuting plan. (Photo: Amir Yusof)

“We have not lost faith. If we all vote no, maybe MAS (the Monetary Authority of
Singapore) and the SGX (Singapore Exchange) would step in and investigate this.
It’s time for them to take over to see if there was any misrepresentation of
information,” he said.

Another perpetual securities and preference shareholder, who wanted to be known

only as Michael, told CNA that he thought MAS should have stopped Hyflux and
the local banks from selling the perpetual securities in 2016.

“MAS should have stepped in to investigate overzealous selling by the banks

because the banks were paid a sum to sell these shares and got a substantial amount
of commission,” said Michael, who invested around S$10,000.

Following Mr Tan's speech, three people who said they were investors spoke to the
crowd at Hong Lim Park. The group dispersed peacefully at 4pm.
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