Hyflux Preference Shares at 6% p.a.

Hyflux is offer­ing $200 mil­lion worth of pref­er­ence share at $100 per share with 6% dividend p.a.. The Class A Pref­er­ence Shares will be cumu­lat­ive, non-con­vert­ible and non-vot­ing and also non-dilut­ive to exist­ing ordin­ary share­hold­ers. As the Hyflux pref­er­ence shares are cumu­lat­ive in nature, any dividends not paid will be accrued and owed to the investor.

Dividend, if declared, will be dis­trib­uted semi-annu­ally on 25th April and 25th Octo­ber each year. The min­im­um sub­scrip­tion is 100 shares ($10,000) and in sub­sequent mul­tiple of 10 shares ($1000).

The applic­a­tion starts from 14 April 2011 at 9.00 a.m. to 20 April 2011 at 12.00 noon. The pref­er­ence shares are expec­ted to be lis­ted and traded on the Main Board of the SGX-ST from 26 April 2011. Hyflux has the option to increase the size of the offer­ing to S$400 mil­lion if applic­a­tions or indic­a­tion of interest received exceed the offer size.

Applic­a­tion can be made through elec­tron­ic applic­a­tions via ATMs of the major loc­al par­ti­cip­at­ing banks, such as DBS Bank (includ­ing POSB), Over­sea-Chinese Bank­ing Cor­por­a­tion Lim­ited and United Over­seas Bank Lim­ited or the inter­net bank­ing web­sites of DBS Bank and the UOB Group.

If the pref­er­ence shares are not redeemed by Hyflux on or after 25 April 2018, the dividend rate will step up to 8% per annum. The implic­a­tion is also that you will not get back your cap­it­al invest­ment then and may have to wait for a longer uncer­tain peri­od.

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