How GIC and Temasek are managing your money

[LITTLEREDDOT]

#1
PIL's Teo family has a long relationship with the PAP leaders.

Temasek unit Heliconia throws $810m lifeline to troubled Pacific International Lines

Pacific International Lines plans to implement the restructuring via a scheme of arrangement.PHOTO: PIL

Grace Leong
Business Correspondent
PUBLISHED NOV 12, 2020, 10:19 PM SGT

SINGAPORE - A US$600 million (S$810 million) lifeline has been offered by Temasek unit Heliconia Capital Management to troubled Pacific International Lines (PIL), paving the way for a rescue of the world's 10th-largest container shipping line now facing "tremendous strain on its liquidity" amid the pandemic-induced recession.
Negotiations with Heliconia and PIL's lenders have been completed, and the Singapore-based boxship operator plans to implement the restructuring via a scheme of arrangement. But the deal hinges on majority approval from creditors that are owed US$3.5 billion, sources told The Straits Times.

A US$112 million emergency credit facility has been advanced to PIL to fund overdue trade vendors and other operating cash requirements, sources say. The remainder of the US$600 million package, which comprises a mix of debt and equity investment, will be used to "repay critical vendors and recalibrate PIL's capital structure to sustainable levels", the company told the Singapore Exchange on Wednesday (Nov 11).

On Tuesday, PIL's lawyers from WongPartnership filed an application to the High Court to hold a meeting for creditors to vote on the restructuring package in January next year. PIL also seeks to include holders of PIL $60 million fixed rate bonds due 2020 in the scheme.

The firm also filed an application for moratorium protection to keep creditors from starting winding up or enforcement proceedings. The hearing date on the applications has not been set.

The scheme must be approved by a majority representing at least 75 per cent in value of each class of creditors present and voting at each scheme meeting.
Alternatively, the scheme must be approved by a majority representing at least 75 per cent in value of at least one class of creditors and approved by a majority representing at least 75 per cent in value of all scheme creditors.

If the requisite majority vote is secured, PIL's restructuring could be completed by first quarter of next year, sources say. Heliconia will own a majority interest in PIL upon completion.

Heliconia could not be reached for comment yesterday. A Bloomberg report in June cited sources saying that Heliconia is keen to take a stake in PIL in part to secure logistics for food supplies to Singapore amid the pandemic.

PIL executive chairman and managing director Teo Siong Seng (better known as SS Teo) told creditors on Nov 11 that "2018 to 2020 have been challenging years for the container shipping industry, with the downturn further exacerbated by the prolonged impact of the pandemic".

"On the back of a smooth-sailing 2017 in the shipping industry, many container liners were overly optimistic in increasing capacity during 2018, resulting in capacity oversupply and falling freight rates. Combined with escalating bunker prices, container liners, including PIL, were faced with compressed margins and cash flows," Mr Teo said in meeting minutes filed with the Singapore Exchange.

"Despite initiatives to improve profitability, the unfavourable industry dynamics and PIL's unsustainable capital structure resulted in continued losses in 2018 and 2019."

Anticipating a further downturn, PIL began talks with financial lenders to consensually re-profile those debts, and entered into a principal and interest moratorium in the second quarter of this year, Mr Teo said.

However, the global economy continued to deteriorate during the pandemic, resulting in PIL "facing tremendous strain on its liquidity, which threatens its ability to operate as a going concern."

To recapitalise its business, PIL began talks with Heliconia in May for an investment into PIL, and then entered into a six-month exclusivity agreement with Heliconia.

"This is different from restructuring attempts like Hin Leong or Hyflux, which filed for bankruptcy protection and then used the time to find investors. If PIL had gone that route, it would have ended up like Hanjin," a source close to the deal said. Once the largest shipping line in South Korea and the seventh-biggest in the world, Hanjin Shipping went bankrupt in 2016 after excess capacity caused the industry's worst crisis at the time.

"In PIL's case, the lenders supported a standstill on enforcement actions until the end of 2020, and PIL used the time to find an investor. Once PIL secured a deal with the investor and major creditors, then it applied to court to hold a scheme meeting," the source said.

 

[LITTLEREDDOT]

#2
The government invoked the patriotic fever and said this is national icon and must be saved. But the iconic Singapore Girl is no more from Singapore ages ago. The Singapore Girl is now from Malaysia, Indonesia, China, India etc. Likewise for the pilots. So effectively using the citizens' monies to save SIA and save jobs for foreigners.

Singapore Airlines prices $850m five-year convertible bonds at 1.625%

SIA on Nov 13 said all the convertible bonds have been fully placed to institutional investors and other investors.PHOTO: ST FILE
PUBLISHED Nov 13, 2020

SINGAPORE (THE BUSINESS TIMES) - The new $850 million five-year convertible bonds by Singapore Airlines (SIA) will carry a coupon of 1.625 per cent per annum and be issued at par.

The initial conversion price is $5.743 for each new ordinary share, said the flag carrier in a bourse filing early on Friday morning (Nov 13).

That represents a conversion premium of about 45.8 per cent over SIA's last closing stock price on Thursday.

If the bonds are all converted, the company will allot and issue about 148 million new ordinary shares, which make up about 5 per cent of the existing issued shares, excluding treasury shares.

The unsubordinated and unsecured bonds will mature on Dec 3, 2025.

SIA on Friday said all the convertible bonds have been fully placed to institutional investors and other investors.


The holders can opt to convert them at least 41 days after the date of issue up to the close of business on the 10th day prior to the maturity date, both dates inclusive.

The airline said it plans to allocate some 60-80 per cent of the proceeds from the deal for operating cash flow and debt service, while 20-40 per cent will go into capital expenditure.

It had proposed the issuance on Thursday evening. Earlier this year, SIA raised $8.8 billion from a rights issue, and has the option of raising up to another $6.2 billion in additional mandatory convertible bonds, which it can exercise by July 2021.

For the purposes of illustration, the net tangible asset (NTA) per share after the bonds are issued but before any conversion would be $5.06, based on the group's unaudited financial statements as at Sept 30, 2020, compared to $5.04 before the issuance, SIA said.

And assuming full conversion of the bonds, the adjusted NTA per share is estimated to be $5.07, based on the financial statements as at Sept 30, 2020.

Net gearing would stand at 0.26 time after the bonds are issued, and improve to 0.2 time assuming full conversion, from 0.27 time as reported in the Sept 30, 2020 financial statements, for illustrative purposes.

SIA will apply to list the convertible bonds and new shares arising from the conversion, on the Singapore Exchange.

HSBC was the sole bookrunner and lead manager of the deal.

Shares of SIA closed at $3.94 on Thursday, up $0.02 or 0.5 per cent.

 

[batman1]

They are in good hands, Buy high sell low.Sinkeeland got talents.

 

[bobby]

If they make money out of your CPF...they will get keep their jobs and a big fat bonus year end.

If they lose money out of your CPF...they will still keep their jobs.

 

[Chase]

What kind of demons are running SIA?

They refuse to let go of deposits and continue to pay for new planes and dispose those A380s.

 

[Chase]

#1
PIL's Teo family has a long relationship with the PAP leaders.

Temasek unit Heliconia throws $810m lifeline to troubled Pacific International Lines

Pacific International Lines plans to implement the restructuring via a scheme of arrangement.PHOTO: PIL

Grace Leong
Business Correspondent
PUBLISHED NOV 12, 2020, 10:19 PM SGT

SINGAPORE - A US$600 million (S$810 million) lifeline has been offered by Temasek unit Heliconia Capital Management to troubled Pacific International Lines (PIL), paving the way for a rescue of the world's 10th-largest container shipping line now facing "tremendous strain on its liquidity" amid the pandemic-induced recession.
Negotiations with Heliconia and PIL's lenders have been completed, and the Singapore-based boxship operator plans to implement the restructuring via a scheme of arrangement. But the deal hinges on majority approval from creditors that are owed US$3.5 billion, sources told The Straits Times.

A US$112 million emergency credit facility has been advanced to PIL to fund overdue trade vendors and other operating cash requirements, sources say. The remainder of the US$600 million package, which comprises a mix of debt and equity investment, will be used to "repay critical vendors and recalibrate PIL's capital structure to sustainable levels", the company told the Singapore Exchange on Wednesday (Nov 11).

On Tuesday, PIL's lawyers from WongPartnership filed an application to the High Court to hold a meeting for creditors to vote on the restructuring package in January next year. PIL also seeks to include holders of PIL $60 million fixed rate bonds due 2020 in the scheme.

The firm also filed an application for moratorium protection to keep creditors from starting winding up or enforcement proceedings. The hearing date on the applications has not been set.

The scheme must be approved by a majority representing at least 75 per cent in value of each class of creditors present and voting at each scheme meeting.
Alternatively, the scheme must be approved by a majority representing at least 75 per cent in value of at least one class of creditors and approved by a majority representing at least 75 per cent in value of all scheme creditors.

If the requisite majority vote is secured, PIL's restructuring could be completed by first quarter of next year, sources say. Heliconia will own a majority interest in PIL upon completion.

Heliconia could not be reached for comment yesterday. A Bloomberg report in June cited sources saying that Heliconia is keen to take a stake in PIL in part to secure logistics for food supplies to Singapore amid the pandemic.

PIL executive chairman and managing director Teo Siong Seng (better known as SS Teo) told creditors on Nov 11 that "2018 to 2020 have been challenging years for the container shipping industry, with the downturn further exacerbated by the prolonged impact of the pandemic".

"On the back of a smooth-sailing 2017 in the shipping industry, many container liners were overly optimistic in increasing capacity during 2018, resulting in capacity oversupply and falling freight rates. Combined with escalating bunker prices, container liners, including PIL, were faced with compressed margins and cash flows," Mr Teo said in meeting minutes filed with the Singapore Exchange.

"Despite initiatives to improve profitability, the unfavourable industry dynamics and PIL's unsustainable capital structure resulted in continued losses in 2018 and 2019."

Anticipating a further downturn, PIL began talks with financial lenders to consensually re-profile those debts, and entered into a principal and interest moratorium in the second quarter of this year, Mr Teo said.

However, the global economy continued to deteriorate during the pandemic, resulting in PIL "facing tremendous strain on its liquidity, which threatens its ability to operate as a going concern."

To recapitalise its business, PIL began talks with Heliconia in May for an investment into PIL, and then entered into a six-month exclusivity agreement with Heliconia.

"This is different from restructuring attempts like Hin Leong or Hyflux, which filed for bankruptcy protection and then used the time to find investors. If PIL had gone that route, it would have ended up like Hanjin," a source close to the deal said. Once the largest shipping line in South Korea and the seventh-biggest in the world, Hanjin Shipping went bankrupt in 2016 after excess capacity caused the industry's worst crisis at the time.

"In PIL's case, the lenders supported a standstill on enforcement actions until the end of 2020, and PIL used the time to find an investor. Once PIL secured a deal with the investor and major creditors, then it applied to court to hold a scheme meeting," the source said.

Temasek already pumped US$110m to PIL four months ago.
https://www.wsj.com/articles/singapores-pil-gets-110-millionlifeline-from-temasek-fund-11596048364

 

[mojito]

#2
The government invoked the patriotic fever and said this is national icon and must be saved. But the iconic Singapore Girl is no more from Singapore ages ago. The Singapore Girl is now from Malaysia, Indonesia, China, India etc. Likewise for the pilots. So effectively using the citizens' monies to save SIA and save jobs for foreigners.

Singapore Airlines prices $850m five-year convertible bonds at 1.625%

SIA on Nov 13 said all the convertible bonds have been fully placed to institutional investors and other investors.PHOTO: ST FILE
PUBLISHED Nov 13, 2020

SINGAPORE (THE BUSINESS TIMES) - The new $850 million five-year convertible bonds by Singapore Airlines (SIA) will carry a coupon of 1.625 per cent per annum and be issued at par.

The initial conversion price is $5.743 for each new ordinary share, said the flag carrier in a bourse filing early on Friday morning (Nov 13).

That represents a conversion premium of about 45.8 per cent over SIA's last closing stock price on Thursday.

If the bonds are all converted, the company will allot and issue about 148 million new ordinary shares, which make up about 5 per cent of the existing issued shares, excluding treasury shares.

The unsubordinated and unsecured bonds will mature on Dec 3, 2025.

SIA on Friday said all the convertible bonds have been fully placed to institutional investors and other investors.


The holders can opt to convert them at least 41 days after the date of issue up to the close of business on the 10th day prior to the maturity date, both dates inclusive.

The airline said it plans to allocate some 60-80 per cent of the proceeds from the deal for operating cash flow and debt service, while 20-40 per cent will go into capital expenditure.

It had proposed the issuance on Thursday evening. Earlier this year, SIA raised $8.8 billion from a rights issue, and has the option of raising up to another $6.2 billion in additional mandatory convertible bonds, which it can exercise by July 2021.

For the purposes of illustration, the net tangible asset (NTA) per share after the bonds are issued but before any conversion would be $5.06, based on the group's unaudited financial statements as at Sept 30, 2020, compared to $5.04 before the issuance, SIA said.

And assuming full conversion of the bonds, the adjusted NTA per share is estimated to be $5.07, based on the financial statements as at Sept 30, 2020.

Net gearing would stand at 0.26 time after the bonds are issued, and improve to 0.2 time assuming full conversion, from 0.27 time as reported in the Sept 30, 2020 financial statements, for illustrative purposes.

SIA will apply to list the convertible bonds and new shares arising from the conversion, on the Singapore Exchange.

HSBC was the sole bookrunner and lead manager of the deal.

Shares of SIA closed at $3.94 on Thursday, up $0.02 or 0.5 per cent.

Never tot I see the day SIA have to sell CB. Sad.

 

[blackmondy]

"Managing" is just a more glorified term for "squandering" in this context.

 

[syed putra]

Meanwhile, a arab managed container shipping company is fairing very well from its base in marseilles, France.

CMA CGM to Expand LNG-Powered Fleet to 26 Vessels
November 12, 2020 by Reuters

CMA CGM Jaques Saad arrives at the CMA CGM-PSA Lion Terminal in Singapore, October 12, 2020. Photo courtesy CMA CGM

PARIS, Nov 12 (Reuters) – Container shipping group CMA CGM will expand its use of liquified natural gas (LNG) to 26 vessels, it said on Thursday, as part of efforts to reduce pollution in ocean shipping.
After announcing three years ago that it would adopt LNG, French-based CMA CGM has made several orders for gas-powered ships and now plans to have 26 such vessels in service by 2022, it said in a statement.
Seven of the vessels are already in service, including the giant Jacques Saade, named after the family group’s founder and which was refuelling in Rotterdam on Thursday after its maiden voyage from China, CMA CGM said.

 

[syed putra]

PIL if I am not mistaken is owned by kuok group. Together with malaysian bulk carrier.

 

[LITTLEREDDOT]

#3
Not reported in local newspapers.

China’s Luckin Coffee files for Chapter 15 bankruptcy in US

• Company continues to meet trade obligations in the ordinary course of business, it says
• Chain’s collapse has led to renewed scrutiny of Chinese companies that sell shares on US exchanges

Luckin Coffee continues to be popular in China.
Photo: Bloomberg

Embattled Chinese coffee chain Luckin Coffee filed for Chapter 15 bankruptcy in New York, less than a year after the company said that more than a quarter’s worth of business may have been faked.

The move will protect the company from lawsuits by US creditors while it reorganises in China, where it runs several thousand outlets. All its coffee shops will remain open for business and the Chapter 15 petition will not materially impact the company’s day-to-day operations, according to a statement issued on Friday.

“The company continues to meet its trade obligations in the ordinary course of business, including paying suppliers, vendors and employees,” the statement said.

The bankruptcy filing caps a saga in which the coffee chain, once thought of as a challenger to Starbucks’ dominance in China, fired its chairman and chief executive, paid hundreds of millions out in fines to regulators in both China and the United States, and saw its stock plunge 90 per cent before being delisted by Nasdaq.

A cup of coffee is poured during Luckin Coffee's IPO at the Nasdaq Market site in New York, in May 2019.
Photo: Reuters

The US Securities and Exchange Commission (SEC) fined the company US$180 million in December after finding that it intentionally fabricated more than US$300 million in sales from April 2019 through January 2020. The company has never officially admitted or denied the SEC’s allegations.

Luckin’s alleged malfeasance, which involved misstating its revenue, expenses and operating loss, was all done to give investors the false impression that the company was experiencing miraculous growth, the SEC said.

The chain’s collapse has led to renewed scrutiny of Chinese companies that sell shares on US exchanges without adhering to rules that require their audits be inspected by American regulators.

The fallout also triggered fresh concerns for global investors about China’s corporate governance, while contributing to the US Congress passing legislation late last year that could lead to Chinese businesses being kicked out of American markets.

Founded in 2017, Luckin operated 3,898 outlets as of November 30 last year, with another 894 “partnership” stores. The chain pulled in customers by offering massive discounts and sought to reach 10,000 locations by the end of this year.

Its coffee – cheaper than Starbucks and sold from takeaway kiosks close to urban professionals – continues to be popular in China. Sales grew 35.8 per cent in the quarter ended September 30 compared to a year ago, according to a document posted on its website.

“This filing does not mean Luckin will close down,” said Jason Yu, managing director at Kantar Worldpanel Greater China. “It can use the filing to abandon debt, close some unprofitable operations and focus on its core business.”

 

[Hypocrite-The]

GIC-backed PRC coffee chain filed for Chapter 15 bankruptcy in New York
by Correspondent
06/02/2021
in Business
Reading Time: 3min read
36

People wearing protective masks gather outside a Luckin Coffee Inc. outlet in Shanghai, China, on Friday, April 3, 2020. Luckin Coffee, the fast-growing Chinese coffee chain, plunged as much as 81% on Thursday after the company said its board is investigating reports that senior executives and employees fabricated transactions. Photographer: Qilai Shen/Bloomberg via Getty Images


News emerged yesterday (5 Feb) that embattled Chinese coffee chain Luckin Coffee has filed for Chapter 15 bankruptcy in New York, less than a year after the company said that more than a quarter’s worth of business may have been faked.
The move is designed to protect the company from lawsuits by U.S. creditors, including bondholders owed $460 million and shareholders.
In U.S. court documents, Luckin Coffee asked the federal court to allow the company to restructure its finances through a court case filed in the Cayman Islands, where the company is incorporated. That proceeding is already underway and is focused on negotiating a settlement with shareholders and bondholders, according to court documents.
Once thought of as a challenger to Starbucks’ dominance in China, Luckin Coffee fired its chairman and chief executive officer as well as the chief operating officer after news emerged that the company had faked its sales reports. It paid hundreds of millions of dollars in fines to both Chinese and U.S. regulators, and saw its stock plunge 90% before being delisted by Nasdaq.
The U.S. Securities and Exchange Commission (SEC) fined the company US$180 million in December after finding that it intentionally fabricated more than US$300 million in sales from April 2019 through January 2020.
Luckin’s alleged malfeasance, which involved misstating its revenue, expenses and operating loss, was all done to give investors the false impression that the company was experiencing miraculous growth, the SEC said.
GIC invested in Luckin Coffee
In 2018, Luckin Coffee raised US$200 million from investors including Singapore sovereign wealth fund GIC and China International Capital Corp. It was reported that the valuation of the company was about US$1.5 to US$2 billion at the time.

And in 2019, the loss-making coffee chain filed for a US initial public offering (IPO) on Nasdaq (‘Share price of GIC-backed PRC coffee chain plunges 75.5% after investigation finds COO fabricated sales‘, 3 Apr 2020).
Since its inception in June 2017, Luckin quickly expanded its chain to thousands of stores in China, with backing from investors including GIC and others. It spent millions of dollars a year opening outlets, trying to unseat Starbucks in China.
Many customers were initially attracted to Luckin coffee chain by its free vouchers. Despite reporting a net loss of US$241.3 million for 2018, it was able to clinch an IPO on Nasdaq a year later.
Last Apr, when news emerged that a special committee of three independent directors would investigate the “misconduct, including fabricating certain transactions” that spanned 3 quarters of 2019, involving RMB2.2 billion (US$310.1 million), Luckin’s share price dived.
COO Jian Liu was immediately suspended along with other staff implicated in the misconduct. Liu was accused of making up transactions and inflating expenses during the April-December period in 2019.
The investigation was actually triggered by a report from California-based Muddy Waters Research. Muddy Waters sounded alarms last Jan by publishing a report accusing Luckin of being a “fraud”. The report, which cited “smoking gun evidence” including 11,260 hours of traffic videos, alleged that Luckin exaggerated daily items per store by more than half during the second half of 2019.
Muddy Waters founder Carson Block commented, “This is again a wake-up call for U.S. policymakers, regulators, and investors about the extreme fraud risk China-based companies pose to our (US) markets.”
Indeed, the chain’s collapse has led to renewed scrutiny of Chinese companies that sell shares on U.S. exchanges without adhering to rules that require their audits be inspected by American regulators. The fallout also triggered fresh concerns for global investors about China’s corporate governance.

 

[Hypocrite-The]

Singapore's Temasek Stumbles Again

Our Correspondent

Nov 17, 2008

Although global markets have stabilized at least temporarily over the last couple of weeks, there is no sign of a letup for Temasek, the Singapore sovereign wealth fund that has already chalked up massive paper losses from its exposure to the world’s ailing banks.
Temasek looks likely to have lost its entire S$400m (US$270m) investment in ABC Learning Centres, the recently-collapsed Australian childcare provider, and there are growing concerns that the fund may have to help bail out the Marina Bay Sands casino project in Singapore as owner Las Vegas Sands creaks under a mountain of debt.
If last year, when Temasek built multi-billion dollar stakes in the once mighty Merrill Lynch and the UK banks Barclays and Standard Chartered, was a bad time to be putting money into the financial services sector, then now is not exactly the ideal moment to be pushed into a big investment in Singapore’s nascent casino industry.
Like other investors enticed by the dramatic gains on offer in a late-stage bull market, Temasek - which is run by Ho Ching, the wife of Prime Minister Lee Hsien Loong - appears to have had the canny knack of buying right at the top of the market and then watching its investments slide in value. Even as the first warning signs of serious problems in the banking sector appeared in the first half of last year, Temasek continued to pump money into the financial services industry, which now accounts for 40 percent of its S$185 billion (US$124 billion) portfolio.
This fondness for the financial services sector may stem in part from Temasek management’s closeness to the bulge-bracket investment banks. Despite the humbling of the one-time masters of the universe over the last year, Temasek has continued to recruit senior executives from Wall Street, bringing in Morgan Stanley investment banker Michael Dee in August and Rohit Sipahimalani, another Morgan Stanley banker, last month.
But the rapid demise of ABC Learning, which is Australia’s largest childcare provider, shows that Temasek’s poor investment decisions are not limited to the banking sector. Temasek bought into ABC in May last year at a punchy A$7.30 a share and the stock soon headed south as the outlook for the over-hyped operator deteriorated. The shares were suspended at 54 cents each in August but equity investors are likely to lose everything after ABC went into administration because of mounting financial problems.
If Temasek were to bail out Marina Bay Sands, it certainly would not be buying at the top of the market. But it would be an investment decision driven less by financial prudence and more by the need for the Singaporean government to ensure that its casino experiment doesn’t fail.
Nervous about the Singapore economy’s narrow reliance on shipping and financial services, the socially-conservative government took the controversial step of legalizing casinos in 2005, prompting an unprecedented public debate in the usually acquiescent city state.
Having staked its reputation on partnerships with the likes of Las Vegas Sands and Malaysia’s Genting (which won the licenses to operate the two casino resorts), the government is desperate not to let the experiment fail. So Las Vegas Sands’ indication last week that it will not be able to meet the requirements of some of its loans unless it cuts spending will have sent shockwaves running through the corridors of power in Singapore.
While Sheldon Adelson, the tycoon behind Las Vegas Sands, has personally confirmed his commitment to completing the Marina Bay Sands resort, analysts now believe it is increasingly likely that the government may have to step in at some stage, probably in the guise of Temasek or one of its linked companies. Adelson’s gaming empire is such bad shape that Sands has had to stop construction in Macau of its huge Cotai Strip development opposite its Venetian complex which is intended to house various 5-star hotels as well as a casino. The Macau government has said -- according to the Financial Times- that it won’t allow any casinos to close and will take them over if necessary. However it seems that commitment does not extend to helping out partly finished projects.
“If Las Vegas Sands cannot cough up its share of equity, the Singapore government is likely to step in,” said Donald Chua, an analyst at local stock broking firm CIMB-GK, in a research note. “A viable option would be a 49:51 joint venture between the Government and CapitaLand, with CapitaLand taking a controlling stake.”
Singapore-based brokerage UOB Kay Hian added that the syndicate of banks providing the S$5.4bn ($3.6bn) debt facility for the construction of Marina Bay Sands could seek a new investor, hinting that they could turn to 40pc-Temasek-owned CapitaLand, a property group that was involved in unsuccessful bids for both casino licenses.
CapitaLand has insisted that it has not held any talks with Las Vegas Sands but, at the same time, it said that it was “strategically watching the situation and studying opportunities related to distressed companies or assets.” And, despite Las Vegas Sands’ assurances, the Singapore Tourist Board stressed this week that it has a number of options should the project fail, including taking possession of the development site.
While Temasek or CapitaLand may be able to pick up a stake in the Marina Bay casino on the cheap, gambling is one strategic industry that the government did not want end up owning. The government originally opted for international gaming companies like Las Vegas Sands and Genting because it thought they had the experience and clout to build world-class casino resorts that would attract gamblers from around the globe. While the Marina Bay Sands is unlikely to be re-branded as the Temasek Casino, whatever happens, gaming analysts doubt whether a government-backed resort would have the same draw.
With the impact of the financial crisis only just starting to hit the global economy, there are likely to be more disappointments ahead for Temasek in the coming months. But Temasek is not required to disclose regular financial results, as it has been given the status of an exempt private company despite being owned by the Ministry of Finance. So the people of Singapore, whose money Temasek is ultimately controlling, will probably have to wait until summer, when the fund is expected to release its next annual review, to find out exactly how badly it has fared over the past year.
Temasek also leaped heavily into one of China's highest profile, and perhaps more vulnerable, property developers, Country Garden. When it went public in Hong Kong in April 2007, Country Garden was the second largest IPO in Hong Kong history, with Temasek joining local tycoons Lee Shau Kee and
Robert Kuok as key investors. According to the mainland financial magazine Caijing, a subsequent S$800 million convertible bond issue in Singapore in February this year was made on terms which suggest the company is very stretched and badly needs to keep its share price from falling. It is now little more than half its initial price and down 75 percent from its peak.
Australia, once seen as a safe if unexciting location for Singapore cash, has also attracted top of the market deals from Singapore Power. Already well-established in Australia, it paid heavily in cash for the eastern Australia assets of pipeline company Alinta but with values in decline they have been unable now to flip them into their 51 percent owned local subsidiary SP Ausnet leaving SP meanwhile saddled with huge borrowings.

 

[Leckmichamarsch]

PIL if I am not mistaken is owned by kuok group. Together with malaysian bulk carrier.

WAT A LOAD OF CAMEL FARTS

 

[LITTLEREDDOT]

#4

DBS faces lawsuits in India after takeover of Lakshmi Vilas Bank

DBS's Lakshmi Vilas acquisition was the first time the Reserve Bank of India turned to a foreign lender to bail out a local bank.PHOTO: ST FILE

21 FEB 2021

SINGAPORE (BLOOMBERG) - DBS Group Holdings, South-east Asia's largest lender, said it's facing lawsuits in India related to its recent takeover of a struggling local bank.

Holders of Lakshmi Vilas Bank's equity shares and Tier-II bonds that were written off before the effective date of amalgamation took legal actions against DBS's local unit in various high courts in India, the Singapore-based lender said in a reply to questions from Bloomberg News.

The acquisition was completed on Nov 27, DBS said earlier this month.

"DBS has no incremental unprovided risks on these lawsuits," it said. "Other legal liabilities in the normal course of business have also been suitably provided for."

DBS's Lakshmi Vilas acquisition was the first time the Reserve Bank of India turned to a foreign lender to bail out a local bank as India's financial industry suffered a series of shocks since the outbreak of a shadow banking crisis in 2018.

While the suits named DBS' India unit as a respondent, the primary respondents would be the Indian government and the RBI, who drafted and approved the amalgamation programme, according to DBS. An RBI spokesman declined to comment on the matter.

DBS chief executive officer Piyush Gupta expects Lakshmi Vilas to become profitable in 12 to 24 months as the Singapore bank sets aside amalgamation expenses and allowances for soured assets, he said at a Feb 10 earnings media briefing.

The Business Times earlier reported the suits and DBS comments.

 

[laksaboy]

Ant Group.

 

[blackmondy]

"Managing" sounds better than "squandering".

 

[LITTLEREDDOT]

#5
"With assets under management (AUM) of about $115 billion, CLIM is expected to be the largest real estate investment manager (Reim) in Asia, and the third-largest listed Reim company globally."

There are so many big property developers in the world in the big developed countries: the US, Canada, Germany, UK, France, Japan, Hong Kong, Korea, China.

Is it possible that a privately-run company in one of the smallest countries in the world can become the largest real estate investment manager (REIM) in Asia and the third-largest listed REIM globally on its own, without patronage, support, and assistance?

Should a government-owned company be allowed to grow so big as to squeeze out true private sector property developers in Singapore?
Does this infringe anti-competition and anti-trust laws?
What is the economic cost to consumers and tenants: lack of choices in Singapore?


CapitaLand to form new investment entity, privatise property development business in key restructuring

With assets under management of about $115 billion, CLIM is expected to be the largest real estate investment manager in Asia.
ST PHOTO: KUA CHEE SIONG

Grace Leong
Senior Business Correspondent

MAR 22, 2021

SINGAPORE - CapitaLand has proposed the group's biggest-ever overhaul that will see the privatising of its real estate development business and consolidation of its fund management and lodging business.

Under the scheme, the group's investment management and fund managing platforms as well as its lodging business will be consolidated into CapitaLand Investment Management (CLIM), which is to be listed by introduction on the Singapore Exchange.

With assets under management (AUM) of about $115 billion, CLIM is expected to be the largest real estate investment manager (Reim) in Asia, and the third-largest listed Reim company globally.

Singapore's biggest property developer announced the restructuring on Monday (March 22) along with CLA Real Estate Holdings, an indirect fully owned unit of Temasek Holdings and CapitaLand's largest shareholder.

As part of the proposed restructuring, the group's real estate development business will be placed under the private ownership of CLA. This entity will develop and incubate projects as a key pipeline for CLIM.

Under the proposed scheme, for every one share held in CapitaLand, eligible shareholders will receive one CLIM share, between 0.155 and 0.143 unit of CapitaLand Integrated Commercial Trust (CICT) and cash of $0.951.

The implied value per share for CapitaLand's shareholders is $4.102, based on current share capital. This is 24 per cent above the last traded price of CapitaLand and represents a premium of 27 per cent to the one-month volume-weighted average price.

CapitaLand shares last traded at $3.31. The company called for a trading halt before the stock market opened on Monday.

Mr Lee Chee Koon, CapitaLand group chief executive officer, will be taking the helm of CLIM as group CEO.

"This restructuring is about sharpening our focus and positioning ourselves to be an asset-light and capital-efficient business," he said.

"We have made good progress to pivot ourselves to the new economy sectors, expanding our global footprint and growing our fee-income business. We are now taking the next step to create a leading global real estate investment manager with dominance in Asia, especially through our track record in the public Reits space.

"As listed Reims generally trade at a premium to their NAVs (net asset values) in the capital markets, we are confident that CLIM will be able to drive returns for our shareholders given its scale, capabilities and a strong ecosystem," he said.

Mr Lee added: "The real estate development business is subject to longer gestation periods and not adequately appreciated by the public markets. With a privately held development business, we will be able to better ride property development cycles to optimise returns across asset classes and geographies.

Under the proposed scheme, CapitaLand will distribute about 48 per cent of shares in CLIM to all its shareholders, excluding CLA.

As this is a one-for-one distribution, the share ownership ratio in CLIM immediately after the issuance of the CLIM shares will be equal to the eligible shareholders' existing ownership in CapitaLand. CapitaLand will continue to own a 52 per cent interest upon listing of CLIM. Its current 28.9 per cent stake in CICT will be reduced to 22.9 per cent.

CLA will not participate in the distribution of the CICT units, and its entitlement to the CICT units will be distributed to the eligible shareholders as part of the scheme.
CLIM at its inception will be a fully integrated Reim with funds and property management capabilities across multiple asset classes and a spectrum of private and listed funds. The managers of all the listed real estate investment trusts (Reits) and business trusts, as well as selected unlisted funds currently managed by CapitaLand, will be held under CLIM.

These funds have a total fund AUM of about $78 billion as at end-December 2020, having grown at a compound annual growth rate of 15 per cent since 2017. CLIM's investment management business will be a scalable and global business focused on fee-related earnings (FRE) and FUM growth, said the announcement.

CapitaLand's full stack lodging management business, which encompasses the leading global serviced residence management platform under The Ascott Limited, will also become a part of CLIM.

CLIM will hold the stakes in the listed Reits and business trusts, as well as the managed private funds. It will also have within its investment portfolio over $10.1 billion worth of income-generating properties.

The remaining real estate development-related business and assets under CapitaLand, with a pro forma NAV of about $6.1 billion, will be held privately by CLA upon completion of the scheme.

The proposed deal will allow eligible shareholders to realise immediate value upside from the development business, which is a segment requiring commitment of capital for longer-term gestation projects, said CapitaLand.

Mr Ng Kee Choe, chairman of CapitaLand, said: "This proposed restructuring is a significant and important milestone in CapitaLand's transformation. It will provide the impetus for us to further expand and scale up our asset and investment management, and lodging businesses whilst benefitting from the pipeline of projects from CapitaLand as part of the ecosystem. It will also extend our market leadership in the Asian real estate investment management business."

CLA chairman Wong Kan Seng said: "As one of Asia's largest diversified real estate groups, this restructuring will play a key role in setting CLIM on a focused and high growth trajectory. It will also provide flexibility for the development business to pursue longer gestation and capital-intensive projects.

"As a major shareholder of CLIM upon completion of the proposed transaction, the privatised CapitaLand and its development arm will support the growth of CLIM as a committed development partner, and by contributing a pipeline of assets that the privatised CapitaLand will incubate. Both entities will have substantial cross-platform synergies and complementary strengths to seize growth opportunities in the market."

Mr Jason Leow, president, Singapore & International of CapitaLand group, will be the CEO of CapitaLand Development, the development business arm of the privatised entity, post the restructure.

The scheme is subject to regulatory conditions, the approval of the High Court and CapitaLand's independent shareholders at an extraordinary general meeting and at a scheme meeting. It is expected to be completed by the fourth quarter this year.

J.P. Morgan (S.E.A.) Ltd and Allen & Gledhill are acting as financial adviser and legal counsel to CapitaLand respectively. DBS Bank and WongPartnership are financial adviser and legal counsel to CLA respectively.

 

[Loofydralb]

Using public money to prop up failing giants is a recipe for disaster.
Cronies will be smiling.

 

[batman1]

Just have to pray they don't become bankrupt.Thanks to the 61% !