SINGAPORE: The Securities Investors Association Singapore (SIAS) will hold an “independent” town hall session next Monday (Feb 25) for retail investors of Hyflux’s perpetual securities and preferences shares to voice their concerns.
The investor-only session will be held at the Nexus Auditorium located along Koek Road from 6.30pm to 9pm. SIAS-appointed independent advisors from Drew & Napier and PricewaterhouseCoopers (PwC) will attend the session, SIAS president David Gerald told Channel NewsAsia on Tuesday (Feb 19).
Apart from the town hall session, three separate briefings for the same group of mom-and-pop investors will be held at the PwC’s office from 7pm to 8.30pm on Feb 20, as well as 6pm to 7.30pm on Feb 21 and Feb 22 respectively.
“Security holders are welcome to provide feedback on the Hyflux’s restructuring during the discussion group sessions,” according to an email sent out by SIAS on Tuesday evening.
Interested investors will have to register with SIAS with their names, contact numbers, email addresses and proofs of holdings. For the town hall session, there will be a registration fee of S$10 “to cover the cost of organising”.
Separate meetings for Hyflux’s medium-term noteholders are in the works, added the investor advocacy group.
Channel NewsAsia had earlier reported that SIAS will be organising investor-only town hall sessions, after receiving a petition from a retail perpetual security and preference shareholder.
This group of 34,000 people are ranked near the bottom of the priority list – above ordinary shareholders but below other senior unsecured creditors – and have been particularly worried about steep haircuts.
Hyflux's announcement of its restructuring plan over the weekend confirmed their earlier fears.
According to figures disclosed by the embattled water treatment firm, holders of perpetual securities and preference shares are facing an implied recovery rate of only 10.7 per cent of their investments.
This includes an additional “top-up” of 1.26 per cent from Ms Lum and the company’s board of directors, who had earlier said they would be contributing their stakes in the company, as well as entitlements from the restructuring, for redistribution.
READ: Hyflux lays out restructuring plan to revitalise business, but retail investors lament big losses
At least one investor is planning to attend the upcoming town hall session to show support.
Describing retail investors as “helpless” and being “sacrificed” to give Hyflux a new lease of life, Ms Violet Seow said: “We have 34,000 retail investors but the majority seems to be missing in action. I am worried that they may not know that they are about to lose their investments with the restructuring.”
Hyflux plans to hold its scheme meeting on Apr 5 if it gets the court’s approval this Thursday.
To pass, the scheme will need to be approved by at least 50 per cent in number and 75 per cent in value of each creditor class at the scheme meeting.