Hyflux

[weijian]

Hyflux has lost its main asset to PUB. And it has had no new contracts coming since then.
What residual value in the company that attracts so many white knights knocking at its door?

Could it be a delay tactic to extend the debt moratorium?

From a balance sheet perspective, we understand TuasSpring to be a liability more than an asset. The last time VBs calculated this here, it was incurring consistent negative FCF - It was selling water to PUB at a loss and its power generation wasn't patching the loss (as it was supposed to). Accountants can put any number on an "asset" but it is up to the investor to judge their own.

From the previous breakup with Pak Salim's SM investments to the current shaky relationship with their 2nd white Knight Utico, and the mushrooming of new suitors, it is becoming clear that Hyflux indeed has an asset, ie. its intangible brand, management know-how and business relationships. Of course, these are not evident on its balance sheet. Unfortunately, these were not enough to save Hyflux then but it may help to recover some money for existing investors (although for most investors, they will still only get back pennies for a dollar)

As for whether it is any delay tactic, it is hard to imagine that one has the clout to attract multiple parties to try to stage delay tactics unless there are genuine proposals in the first place.