Temasek to sell SIF stake
Company 'exploring options' with mainboard-listed SFI
By Jessica Cheam
Stock of food manufacturer and supplier Singapore Food Industries has bucked the trend of falling equities worldwide by gaining 11.25 per cent in value in the past year. Temasek owns almost 70 per cent of SFI, according to data by Bloomberg News. -- ST FILE PHOTO
TEMASEK Holdings is in talks to sell its controlling stake in food manufacturer and supplier Singapore Food Industries (SFI), the mainboard-listed firm said yesterday.
The stock has bucked the trend of falling equities worldwide by gaining 11.25 per cent in value in the past year.
Discussions are 'ongoing' between Temasek unit Ambrosia Investments and a 'potential acquirer', said SFI in a statement to the Singapore Exchange.
Temasek's managing director of investments David Heng said in an e-mail statement to The Straits Times that Temasek is 'exploring options... with the aim of unlocking shareholder value and optimising returns'.
SFI's board, however, cautioned that there is 'no assurance that any transaction will materialise arising from the discussions'.
Shareholders and investors are therefore advised to exercise caution in their dealings in the firm's shares, it said.
Temasek's possible sale of its stake in SFI comes shortly after the investment firm shelved plans to sell power generation company PowerSeraya.
It cited 'market conditions' as a reason for halting the sale, as growing pessimism about the global economy has put the brakes on corporate deals worldwide.
Temasek owns almost 70 per cent of SFI, according to data tracked by Bloomberg News.
The firm's share price closed 1.5 cents down at 89 cents yesterday, which gives it a market capitalisation of about $459.5 million.
Mr Kevin Scully, the executive chairman of NRA Capital, said the stock was likely to be supported by market talk of a possible takeover.
'Temasek has been trying to move out of old industries for some time, so this divestment is not surprising,' Mr Scully told The Straits Times.
The possible sale of the SFI stake is unlike the sale of PowerSeraya, which is a much larger, strategic deal, he added. Given the current economic climate, it is likely to be more difficult to sell PowerSeraya at a good price.
On whether it was a favourable time for Temasek to be selling SFI, co-head of research at DMG & Partners Terence Wong said if the price is good, 'it doesn't matter if it's a good or bad market'.
'Temasek has been looking to consolidate key assets for some time,' he said.
Temasek has a $185 billion portfolio and also holds stakes in some of Singapore's biggest public companies, including SingTel and DBS Group Holdings.
[email protected]
Company 'exploring options' with mainboard-listed SFI
By Jessica Cheam
Stock of food manufacturer and supplier Singapore Food Industries has bucked the trend of falling equities worldwide by gaining 11.25 per cent in value in the past year. Temasek owns almost 70 per cent of SFI, according to data by Bloomberg News. -- ST FILE PHOTO
TEMASEK Holdings is in talks to sell its controlling stake in food manufacturer and supplier Singapore Food Industries (SFI), the mainboard-listed firm said yesterday.
The stock has bucked the trend of falling equities worldwide by gaining 11.25 per cent in value in the past year.
Discussions are 'ongoing' between Temasek unit Ambrosia Investments and a 'potential acquirer', said SFI in a statement to the Singapore Exchange.
Temasek's managing director of investments David Heng said in an e-mail statement to The Straits Times that Temasek is 'exploring options... with the aim of unlocking shareholder value and optimising returns'.
SFI's board, however, cautioned that there is 'no assurance that any transaction will materialise arising from the discussions'.
Shareholders and investors are therefore advised to exercise caution in their dealings in the firm's shares, it said.
Temasek's possible sale of its stake in SFI comes shortly after the investment firm shelved plans to sell power generation company PowerSeraya.
It cited 'market conditions' as a reason for halting the sale, as growing pessimism about the global economy has put the brakes on corporate deals worldwide.
Temasek owns almost 70 per cent of SFI, according to data tracked by Bloomberg News.
The firm's share price closed 1.5 cents down at 89 cents yesterday, which gives it a market capitalisation of about $459.5 million.
Mr Kevin Scully, the executive chairman of NRA Capital, said the stock was likely to be supported by market talk of a possible takeover.
'Temasek has been trying to move out of old industries for some time, so this divestment is not surprising,' Mr Scully told The Straits Times.
The possible sale of the SFI stake is unlike the sale of PowerSeraya, which is a much larger, strategic deal, he added. Given the current economic climate, it is likely to be more difficult to sell PowerSeraya at a good price.
On whether it was a favourable time for Temasek to be selling SFI, co-head of research at DMG & Partners Terence Wong said if the price is good, 'it doesn't matter if it's a good or bad market'.
'Temasek has been looking to consolidate key assets for some time,' he said.
Temasek has a $185 billion portfolio and also holds stakes in some of Singapore's biggest public companies, including SingTel and DBS Group Holdings.
[email protected]
