http://www.bloomberg.com/apps/news?pid=20601080&sid=axCB2V7W4uko
Bloomberg.com, 29 Jul 2009, Shamim Adam
Temasek to Hang on to ‘Family Jewels,’ Allow Public to Invest
July 29 (Bloomberg) -- Temasek Holdings Pte vowed to hang on to the “family jewels” as a long-term investor and said it may allow the public to invest in Singapore’s state-run fund.
The value of the company’s assets dropped by more than S$40 billion ($27.8 billion) in the 12 months ended March, Chief Executive Officer Ho Ching said in a speech in Singapore today. The investment firm will act to enhance value over as long as 30 years and will not sell stakes “for divestment’s sake,” Ho said.
“We don’t intend to raid the larder nor sell the family jewels for short-term gains,” Ho said. “We will jealously guard our interest and will invest, rationalize, consolidate or divest where it makes sense, where we can achieve clear, sustainable value.”
Ho, wife of Singapore’s Prime Minister Lee Hsien Loong, drove an expansion outside Singapore and increased financial assets to 40 percent of a portfolio that has declined as the credit crisis drove down the value of stakes in Merrill Lynch & Co., Barclays Plc and Standard Chartered Plc.
Temasek would consider over the long term creating one more group of stakeholders, and may invite the public to “co- invest” with the company, Ho said. It may seek “sophisticated investors” in five to eight years and retail investors in the next eight to 10 years, she added.
“It is important to test this over at least one market cycle during the next five to eight years,” she said. “If this pilot is successful, we may then consider a co-investment platform for retail investors in perhaps eight to 10 years’ time.”
‘Pretty Huge Investments’
Temasek was also looking for long-term investors, Ho added.
“You’ve got to balance the conflict between the interests of shareholders and that of the state, which may not always be the same,” said David Cohen, director of Asian economic forecasting at Action Economics in Singapore. “I imagine that Temasek could attract some pretty huge investments.”
Temasek is the biggest shareholder in five of Singapore’s 10 biggest publicly traded companies by market value, including Singapore Telecommunications Ltd., Southeast Asia’s biggest phone company, and DBS Group Holdings Ltd., the region’s largest bank by assets.
Ho said financial sector investments will still form part of Temasek’s core holdings. Temasek is still “fairly comfortable” in the financial sector.
The fund, in the first quarter, sold its 3.8 percent stake in Bank of America Corp., which bought Merrill Lynch, at a loss that may have totaled $4.6 billion. Temasek sold its stake in London-based Barclays at a loss in December and January, Reuters reported on June 3, citing people familiar with the matter.
Temasek was founded in 1974 to foster development of the island’s banks, airlines and ports. It owns shares of the island’s biggest bank and its largest telephone company.
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1. Temasek to Hang on to ‘Family Jewels,’ Allow Public to Invest
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Bloomberg.com, 29 Jul 2009, Shamim Adam
Temasek to Hang on to ‘Family Jewels,’ Allow Public to Invest
July 29 (Bloomberg) -- Temasek Holdings Pte vowed to hang on to the “family jewels” as a long-term investor and said it may allow the public to invest in Singapore’s state-run fund.
The value of the company’s assets dropped by more than S$40 billion ($27.8 billion) in the 12 months ended March, Chief Executive Officer Ho Ching said in a speech in Singapore today. The investment firm will act to enhance value over as long as 30 years and will not sell stakes “for divestment’s sake,” Ho said.
“We don’t intend to raid the larder nor sell the family jewels for short-term gains,” Ho said. “We will jealously guard our interest and will invest, rationalize, consolidate or divest where it makes sense, where we can achieve clear, sustainable value.”
Ho, wife of Singapore’s Prime Minister Lee Hsien Loong, drove an expansion outside Singapore and increased financial assets to 40 percent of a portfolio that has declined as the credit crisis drove down the value of stakes in Merrill Lynch & Co., Barclays Plc and Standard Chartered Plc.
Temasek would consider over the long term creating one more group of stakeholders, and may invite the public to “co- invest” with the company, Ho said. It may seek “sophisticated investors” in five to eight years and retail investors in the next eight to 10 years, she added.
“It is important to test this over at least one market cycle during the next five to eight years,” she said. “If this pilot is successful, we may then consider a co-investment platform for retail investors in perhaps eight to 10 years’ time.”
‘Pretty Huge Investments’
Temasek was also looking for long-term investors, Ho added.
“You’ve got to balance the conflict between the interests of shareholders and that of the state, which may not always be the same,” said David Cohen, director of Asian economic forecasting at Action Economics in Singapore. “I imagine that Temasek could attract some pretty huge investments.”
Temasek is the biggest shareholder in five of Singapore’s 10 biggest publicly traded companies by market value, including Singapore Telecommunications Ltd., Southeast Asia’s biggest phone company, and DBS Group Holdings Ltd., the region’s largest bank by assets.
Ho said financial sector investments will still form part of Temasek’s core holdings. Temasek is still “fairly comfortable” in the financial sector.
The fund, in the first quarter, sold its 3.8 percent stake in Bank of America Corp., which bought Merrill Lynch, at a loss that may have totaled $4.6 billion. Temasek sold its stake in London-based Barclays at a loss in December and January, Reuters reported on June 3, citing people familiar with the matter.
Temasek was founded in 1974 to foster development of the island’s banks, airlines and ports. It owns shares of the island’s biggest bank and its largest telephone company.
-----------------
Other News @ Singapore News Alternative:
1. Temasek to Hang on to ‘Family Jewels,’ Allow Public to Invest
2. Temasek May Create One More Group of Stakeholders
3. Scrapping of Temasek succession "unfortunate" - CEO Ho Ching
4. Temasek Portfolio Lost Over S$40 Billion - Temasek CEO
5. Temasek CEO says looking at food, energy sectors
6. Gifts for the dead could be dying out in Singapore
7. Seelan Palay’s solo art exhibition
8. Simmering bitterness over MAS handling of minibond misselling
9. Singapore banks Q2 dented by bad debts
10. Singapore to host regional center for intellectual property disputes, UN says
Latest Videos Added:
1. Peter Schiff's Vlog Report - 28 Jul 2009
2. Singapore - One Step Closer
.
