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Selected Case

published: 25 Jan 2011

  • Topic: Economics & Finance
  • Industry: Water Industry
  • Region: Asia

Abstract:
The growth of Hyflux Limited (Hyflux) required it to become more financially sophisticated. As part of its “asset-light” funding strategy – optimising the use of capital by realising asset values early to keep a lean balance sheet - Hyflux spun off 13 water plants to a business trust, Hyflux Water Trust (HWT).

Pedagogical Objectives:
To study the different options of funding for Hyflux, the pros and cons of listing a business trust, including the corporate governance issues involved in such a structure, and which is a better investment opportunity - Hyflux or HWT.

Keywords:
Project Finance, Business Trust, Renewable Resources, Infrastructure Funds, Spin-Off, Water Industry, Asset Light Strategy, Corporate Governance, Corporate Governance, Corporate Governance for Family Firms

Prizes won:
- Winner of 2010 EFMD Case Writing Competition Award


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