Temasek Buys Standard Chartered Stake

[george]

Temasek buys Standard Chartered stake

Singapore: -- Temasek Holdings is buying the late tycoon Khoo Teck Puat's entire stake in Britain's Standard Chartered (Stanchart) Bank for an undisclosed sum, the state investment company said early Tuesday.

The move to acquire an 11.55-per-cent stake in Stanchart, amounting to 152.4 million shares, makes Temasek the largest single shareholder in a globally known financial institution.

No purchase price for the transaction was revealed. Based on Monday's closing share price in the United Kingdom, where Stanchart is listed, the stake is worth 2.32 billion pounds (4.05 billion US dollars).

The acquisition, subject to regulatory approvals, will likely be one of Temasek's largest purchases, surpassing the recent 2.9- billion-US-dollar takeover of Thai giant Shin Corp, which triggered massive ongoing protests in Bangkok.

Wholly owned by the Singapore government, Temasek has been boosting its Asian banking assets with recent buys in India, China and South Korea. The investment arm also held directly and indirectly 0.07 per cent of Stanchart prior to the current deal.

Stanchart has an extensive network with operations in Hong Kong, Singapore, India, China and South Korea, as well as in the Middle East, Africa, Britain and the Americas.

Khoo was Singapore's richest man. When he died two years ago at age 87, speculation was rife over what the estate would do with the Stanchart stake.

"We are indeed privileged to have this opportunity to invest in a unique franchise with an outstanding board and management team," said Temasek board member and executive-director designate Simon Israel in a statement.

"We greatly admire the way the Standard Chartered team has successfully developed a distinctive strategy, delivered a growth track record and created shareholder value over the last few years."

Among the parties reported to have been interested in the stake were Citigroup, HSBC Holdings, JPMorgan Chase and Barclays.

--DPA / Bangkok Post 2006-03-28

[thedude]

omigod, they are taking over Britain!

Temasek, get out! Britain is not for sale!

[OldAsiaHand]

Yes it is. But nobody wants to buy it.

[h90]

Yes it is. But nobody wants to buy it.

[Thaising]

Not only that, Singapore GIC is joining hand with Canadian pension fund to bid the biggest ports operator Associated British Ports.

"The consortium's considerations are at a preliminary stage and there can be no assurance that any offer will be made," Goldman Sachs said in a statement to the London Stock Exchange.

The consortium includes Goldman Sachs, the Canadian pension fund Borealis Infrastructure Management and GIC Special Investments -- an investment arm of Singapore's government.

City A.M., London's free financial daily, had reported earlier on Monday that a consortium planned to launch a bid worth 740 pence per share, or 2.3 billion pounds (3.3 billion euros, 4.0 billion dollars) within days.

AB Ports has a market value of 2.18 billion pounds, with its share price up 2.37 percent at 712.50 pence in London afternoon trade on Monday.

What come next for Temasek that is for everybody to guess.