Temasek: We've gotten out of Hyflux before they issue preferred shares and perpetual securities


On Saturday (March 30), at least 500 people went to Hong Lim Park to protest against Hyflux. Many are looking to lose 80-97% of their life savings and retirement funds that have invested heavily in preferred stocks Hyflux and perpetual bonds (ie, high risk bonds).

So far, some 34,000 retail investors have invested about $ 900 million in Hyflux preferred shares and perpetual bonds offered in two tranches in 2011 and 2016. That sum is nearly double the $ 500 million lost by the 10,000 retail investors in the region. Saga of Lehman Minibond in 2008.

The media reported yesterday (March 31) that one investor, Mdm B. Chua, 62, had lost $ 6,000 while her husband, $ 100,000, invested in Hyflux preferred shares and perpetual securities. It was reported that they invested in Hyflux because "Temasek had invested" in the company.

Mdm Chua said: "We invested in Hyflux because government support for the company was very strong. We invested because Temasek invested. And Temasek must have done due diligence. " In other words, Mdm Chua thinks that the government and Temasek know everything and know what is best for the country. The couple thought they could trust the government.

"When the banks sold the bonds to us, they told us that Temasek invested, so do not worry. And if you do not buy, someone else will, "added Mdm Chua." Investors came in because it was a national asset. "

"Many of us were quiet initially. But I felt I had to go to the protest. We must express that we care, "she said. In fact, many have the same opinion as Mdm Chua.

After the news was reported yesterday, Temasek immediately wrote a letter to the ST Forum to clarify. The letter was published today ("Temasek and his unit have had no investment in Hyflux since 2006," April 1).

Stephen Forshaw, head of Public Affairs for Temasek International, responded by saying that Temasek's investment in Hyflux was "part of an initiative in the early 2000s to invest in small and medium-sized enterprises in Singapore."

This was to "support their growth in promising sectors" such as water technology, he said.

"After completing its investment objectives, Temasek got out of its investment in Hyflux," he clarified on behalf of Temasek.

"That was before 2006, as noted in the report – well before the issue of Hyflux's preferred shares in 2011 and its perpetual bonds in 2016."

In other words, Temasek is saying it was out of Hyflux before the issue of Hyflux's preferred shares in 2011 and its perpetual bonds in 2016.

Forshaw continued that Temasek has not invested in Hyflux since 2006.

Of course, do you ask if Temasek came out to say something when banks and institutions were using their "good name" as a reference when they were selling Hyflux preferred shares and securities to retail investors in 2011 and 2016?

What do you think?


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