Hyflux has been planning to sell Tuaspring at its book value of $1.3 billion since February last year.
Obviously no investors are stupid enough to buy Tuaspring at Hyflux’s price: Tuaspring has been losing money since 2013.
5 months ago, CEO Olivia had still refused to budge on Tuaspring’s selling price and boasted: “We believe that we have a good asset, we have a good track record, still have a brand name. Why are we cornered? We know what we are doing.” BT
3 months later, Hyflux announced its Q1 results: Tuaspring net loss of $23.25 million.
Good asset + good track record = Quarterly loss of $23.25 million for Tuaspring?
On 19 July, Olivia told investors that “We don’t have a restructuring plan to share yet .. “. After 17 months, there is no guarantee that Tuaspring will not continue to bleed investors.
Olivia appears to be still in denial; it’s mission impossible to sell loss-making Tuaspring at book value of $1.3 billion.
Or maybe not. I think there’s one person who could possibly sell Tuaspring for $1.3 billion: Tom Cruise.