Temasek Holdings

Artillary... artillery... take cover... better siam...


Temasek Acquires JD.com, Cheetah Stakes Diversifying China Bets
2014-08-14 17:32:58.898 GMT


By Klaus Wille
Aug. 15 (Bloomberg) -- Temasek Holdings Pte, Singapore’s state-owned investment firm, purchased U.S.-listed stocks in Chinese technology and consumer firms in the second quarter as it diversifies away from bank holdings in Asia’s biggest economy.
Temasek, directly or through its units, bought 602,139 American depositary receipts of China’s second-largest e- commerce site JD.com Inc. with a market value of $17.2 million, according to a filing yesterday with the U.S. Securities and Exchange Commission. It also purchased a net 603,764 ADRs in security software maker Cheetah Mobile Inc., valued at $12.8 million. Both companies were listed in May.
The transactions help the city-state’s investment firm extend its reach in China and ease its reliance on the nations’
banks. While two of Temasek’s six biggest listed global holdings by market value are still Chinese lenders, it also acquired stakes in consumer-related firms this year and last.
“In terms of region they are increasing their exposure to China,” said Song Seng Wun, an economist at CIMB Research in Singapore. “In terms of investment themes, they are buying consumer-oriented assets which helps them go beyond financial assets in the country.”
JD.com had its U.S. initial public offering in May when it raised $1.78 billion by selling 93.7 million American depositary receipts. The firm is controlled by Richard Liu, who is China’s sixth-richest person, with a net worth of $8.8 billion, according to the Bloomberg Billionaires Index.

June Surge

Software maker Cheetah is backed by Kingsoft Corp. and Tencent Holdings Ltd. and raised $168 million in its U.S. IPO on May 8.
Temasek held 1 million shares in Cheetah Mobile in May after the IPO, according to data compiled by Bloomberg at the time. Yesterday’s filing shows it owned 603,764 shares at the end of June, indicating it sold 396,236 shares. The share price gained 52 percent until the end of June.
Money managers who oversee more than $100 million in equities must file a Form 13F with the SEC within 45 days of each quarter’s end to show their U.S.-listed stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.
Temasek, the biggest foreign investor in China’s largest banks, has stakes in Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and Bank of China Ltd. valued at
$20 billion, according to data compiled by Bloomberg.

Sabre, Mosaic

Temasek in March agreed to buy a 25 percent stake in Hong Kong-based Hutchison Whampoa Ltd.’s retail arm A.S. Watson & Co., which has more than 10,500 retail outlets in Asia and Europe, for HK$44 billion ($5.7 billion).
Temasek is also invested in China’s biggest e-commerce operator, Alibaba Group Holding Ltd., which is headed toward what may be the largest U.S. IPO in history.
Among Temasek’s other transactions in U.S.-listed companies in the second quarter was the purchase of 1.5 million shares in travel software and data company Sabre Corp. which had its IPO in April, according to yesterday’s filing.
Temasek sold 5.8 million shares in fertilizer company Mosaic Co. and increased its holdings in enzyme product developer BioMarin Pharmaceutical Inc. by 580,924 shares. The investment firm sold its 200,000 shares in online classified ads provider 58.com, according to the filing.
“Some adjustments occur to our holdings in various companies as we rebalance our portfolio and where we have opportunities to invest in companies consistent with our investment themes,” Temasek spokesman Stephen Forshaw said in an e-mailed statement.
Temasek, wholly owned by Singapore’s Ministry of Finance, is the ninth-biggest state investor with an estimated $177 billion of assets, according to the website of the Sovereign Wealth Center.
The investment company said last month that total shareholder return for the 12 months ended March 31 shrunk to
1.5 percent from 8.9 percent in the previous fiscal year as Asia holdings weighed on the performance.

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Temasek Asset Growth Slows as Asia Holdings Damp Performance FIFW NSN N8DWDX6KLVRI <GO> Temasek Holdings Boosted Stake in U.S. Health-Care Industry FIFW NSN N5NB1M6JIJUV <GO> DBS Tops Southeast Asia M&A Advisers With Help From Temasek FIFW NSN N9K9K26JIJVT <GO> Sovereign wealth fund news: NI SWF <GO> 13F Alerts: NI 13F <GO>

To contact the reporter on this story:
Klaus Wille in Singapore at +65-6231-3658 or kwille@bloomberg.net To contact the editors responsible for this story:
Andreea Papuc at +852-2977-6641 or
apapuc1@bloomberg.net
Josh Friedman, Mary Romano

http://www.businesstimes.com.sg/premium/...s-20140905

PUBLISHED SEPTEMBER 05, 2014
Temasek, JTC plan to wed units, make cities
Merged entities' collective expertise will span value chain for urban development projects
BYKENNETH LIM
kenlim@sph.com.sg @KennethLimBT

Temasek Holdings and JTC Corporation plan to create an infrastructure and development behemoth to ride the rising wave of urbanisation washing over emerging markets, the Singapore state-owned entities announced on Thursday - PHOTO: SPH
application/pdf iCONTHE MERGER
[SINGAPORE] Temasek Holdings and JTC Corporation plan to create an infrastructure and development behemoth to ride the rising wave of urbanisation washing over emerging markets, the Singapore state-owned entities announced on Thursday.
JTC, Singapore's industrial infrastructure development agency, and Temasek, an investment firm, will begin talks to explore the merging of JTC's Ascendas and Jurong International Holdings (JIH) with Temasek's SingBridge Group and Surbana International Consultants Holdings.
Both sides said they have engaged advisers and consultants as part of their due diligence process and to provide fair market valuations. Official estimates place the combined annual revenue of Ascendas, JIH and Surbana north of S$1 billion.
The operating entities of the merger candidates, including Ascendas's listed real estate investment trusts (Reits), will continue business as usual, and no general offer obligations are expected to be triggered, JTC and Temasek said in a joint statement.
In their sights is a slice of the urbanisation pie, which by some accounts could be a major theme over the next decade.
In an October 2013 report, consulting firm McKinsey reckoned that 45 per cent of Fortune Global 500 companies will be from emerging markets in 2025, up from just 5 per cent in 2000. Of the 7,000 companies that could reach US$1 billion of revenue by 2025, about 70 per cent of them are expected to be from emerging markets.
UK-based Atkins, a major player in the field, saw profit growth of 14.2 per cent in the year ended March 2014.
Dilhan Pillay Sandrasegara, head of Temasek's enterprise development group, said: "Temasek sees growing opportunities in the sustainable urban development sector. Apart from the trends we see with the increasing urbanisation in growth markets, we also see an emerging and keen interest in building sustainable cities, both inside and outside Asia."
The four entities in the proposed merger bring expertise that, when combined, will span the value chain for urban development projects.
Ascendas, a wholly owned subsidiary of JTC, is a business real estate specialist that develops and runs business, science and industrial parks. It manages three Singapore-listed Reits - Ascendas Reit, Ascendas India Trust and Ascendas Hospitality Trust.
JIH, which is also fully owned by JTC, is a consultancy and project and facilities management services provider.
Temasek-owned SingBridge is an urban investment and development company with a specialty in integrated cities and sustainable urban solutions.
Surbana is an urbanisation consultancy subsidiary of Temasek that offers solutions in areas from architecture and engineering through to urban planning and city management.
"The merged group will have the scale, capabilities and resources to participate in the entire urbanisation value chain, deepen its presence in existing markets and develop new ones. More importantly, this partnership with Temasek provides more growth opportunities for the four businesses and their people," JTC chief executive Png Cheong Boon said in a statement.
Fulfilling that ambition of creating an urbanisation legend is still in its early days. The due diligence process could take a few months and the eventual group structure has not been set, Temasek spokesman Jeffrey Fang said in response to queries.
The intention is to preserve the companies' flexibility to continue to seek business that plays to their own strengths.
"We don't intend to take away the nimbleness of these companies," Mr Fang said.
The merger could also link two major industrial property landlords in Singapore. Ascendas and Temasek's Mapletree Investments manage slightly more than 10 per cent of the country's industrial and logistics properties.
Said a JTC spokesman: "We do not expect the merger to affect industrial rentals in the market."

Mother loves this Ah Siah Kiah even more...

Better dont do a 'CapitaMall Asia' on minorities - List, Wait until Assets Maturing, Delist without sharing with minorities...

All these can't help reminding me of OA 2.5% interest rate.

Actually I am very positive about this tie up. This is because there are presence of two or more govt linked firms in the same sector. Take for example, the industrial space. We have Ascendas & mapletree competing in the same field. its similar to many other sectors of real estate where 2 big major govt-backed coys are competing each other. Similarly, if people are familiar, we have CPG (PUB) and Surbana Singapore (JTC) competing each other in consultancy and surveying works, a brief history is that both were formerly govt depts which were eventually corporatised. Same applies to rail industry, where I dont understand why SBS transit and SMRT must compete when their major shareholder is the same. In mail delivery, a portion within ST logistics is competing with singppost in delivering mails to registered address

There are too many duplications and it is a good move to merge many of them so as to achieve economies of scale. And I look forward to eventual tie ups and merging until we have only 1 govt backed firm in each major sector

In that sense, isn't it best for M1 ,Star Hup and Singtel to combine into one "BIG CO". And then it's either you take it or nothing. Why like that? Hasn't Singapore sign the FTA? As things as they are, i think G-linked coys are following FTA in letter only.

Saw this announcement by this company called TIH Limited. Sounds interesting. Anyone knows what this is about? Sounds like Temasek is doing some type of joint venture with TIH?

"The Board wishes to inform our shareholders that the transformation of TIH Limited (the “Company”, together with its subsidiaries, the “Group”) is progressing as planned. The Company seeks to expand its business beyond private equity and venture capital investments to include special situation investment opportunities with listed and private companies. The Company shall broaden and deepen its strategic relationships with significant market players in the Greater China Region and Southeast Asia in order to improve deal sourcing and asset management capabilities. The Company will strategically acquire non-core assets from its partners and help create value for all stakeholders in these positions. In some cases, judicious leverage maybe employed to enhance capital return on equity. The Company intends to work closely with our strategic co-investors to help monitor and create exits for such investments. Through the process, the Company aims to provide steady dividend return to our shareholders in the medium to long term time horizon.
As part of this initiative, Killian Court Pte Ltd (a wholly owned subsidiary of the Company (“Killian”)) and its wholly-owned subsidiary TIHT Investment Holdings Pte. Ltd. (“TIHT”) have entered into a Share Purchase Agreement dated 4 September 2014 with Republic Technologies Pte Ltd ("Republic") and Baytree Investments (Mauritius) Pte Ltd ("Baytree") for TIHT to acquire a portfolio of assets, that includes minority stakes in Mitsui Life Insurance Company Limited and CEI Contract Manufacturing Limited, for a total consideration of SGD 129 million (“Consideration”). The Consideration is payable partly in cash and partly by way of financing and an issue of shares in TIHT. Post and subject to completion of the acquisition, TIHT will be held as to 55% by Killian and 45% by Republic.
Both Baytree and Republic are indirect wholly-owned subsidiaries of Temasek Holdings (Private) Limited. The Company shall work closely with Republic, Mitsui Life and CEI to enhance value for our shareholders in the future. The transaction is conducted in the Company's ordinary course of business and therefore does not require the approval of the shareholders of the Company under Chapter 10 of the Listing Manual.
The transaction does not have a significant impact on the Company’s working capital and gearing.
None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, (other than through their respective shareholdings in the Company) in the above transaction."

(06-09-2014, 01:07 PM)Temperament Wrote: In that sense, isn't it best for M1 ,Star Hup and Singtel to combine into one "BIG CO". And then it's either you take it or nothing. Why like that? Hasn't Singapore sign the FTA? As things as they are, i think G-linked coys are following FTA in letter only.

Won't merge la. It is part of internal ( or whatever u call it) competition among the GLC telcos. All these 'managed competition' industries not even under CCS preview. They are SPECIAL. or With Special interests.


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I thought TIH is doing Karang Guni man for Temasek in this deal.

(06-09-2014, 01:21 PM)Whatsup1234 Wrote: Saw this announcement by this company called TIH Limited. Sounds interesting. Anyone knows what this is about? Sounds like Temasek is doing some type of joint venture with TIH?

"The Board wishes to inform our shareholders that the transformation of TIH Limited (the “Company”, together with its subsidiaries, the “Group”) is progressing as planned. The Company seeks to expand its business beyond private equity and venture capital investments to include special situation investment opportunities with listed and private companies. The Company shall broaden and deepen its strategic relationships with significant market players in the Greater China Region and Southeast Asia in order to improve deal sourcing and asset management capabilities. The Company will strategically acquire non-core assets from its partners and help create value for all stakeholders in these positions. In some cases, judicious leverage maybe employed to enhance capital return on equity. The Company intends to work closely with our strategic co-investors to help monitor and create exits for such investments. Through the process, the Company aims to provide steady dividend return to our shareholders in the medium to long term time horizon.
As part of this initiative, Killian Court Pte Ltd (a wholly owned subsidiary of the Company (“Killian”)) and its wholly-owned subsidiary TIHT Investment Holdings Pte. Ltd. (“TIHT”) have entered into a Share Purchase Agreement dated 4 September 2014 with Republic Technologies Pte Ltd ("Republic") and Baytree Investments (Mauritius) Pte Ltd ("Baytree") for TIHT to acquire a portfolio of assets, that includes minority stakes in Mitsui Life Insurance Company Limited and CEI Contract Manufacturing Limited, for a total consideration of SGD 129 million (“Consideration”). The Consideration is payable partly in cash and partly by way of financing and an issue of shares in TIHT. Post and subject to completion of the acquisition, TIHT will be held as to 55% by Killian and 45% by Republic.
Both Baytree and Republic are indirect wholly-owned subsidiaries of Temasek Holdings (Private) Limited. The Company shall work closely with Republic, Mitsui Life and CEI to enhance value for our shareholders in the future. The transaction is conducted in the Company's ordinary course of business and therefore does not require the approval of the shareholders of the Company under Chapter 10 of the Listing Manual.
The transaction does not have a significant impact on the Company’s working capital and gearing.
None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, (other than through their respective shareholdings in the Company) in the above transaction."

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How come? What did you mean?

(06-09-2014, 03:25 PM)opmi Wrote: I thought TIH is doing Karang Guni man for Temasek in this deal.

(06-09-2014, 01:21 PM)Whatsup1234 Wrote: Saw this announcement by this company called TIH Limited. Sounds interesting. Anyone knows what this is about? Sounds like Temasek is doing some type of joint venture with TIH?

"The Board wishes to inform our shareholders that the transformation of TIH Limited (the “Company”, together with its subsidiaries, the “Group”) is progressing as planned. The Company seeks to expand its business beyond private equity and venture capital investments to include special situation investment opportunities with listed and private companies. The Company shall broaden and deepen its strategic relationships with significant market players in the Greater China Region and Southeast Asia in order to improve deal sourcing and asset management capabilities. The Company will strategically acquire non-core assets from its partners and help create value for all stakeholders in these positions. In some cases, judicious leverage maybe employed to enhance capital return on equity. The Company intends to work closely with our strategic co-investors to help monitor and create exits for such investments. Through the process, the Company aims to provide steady dividend return to our shareholders in the medium to long term time horizon.
As part of this initiative, Killian Court Pte Ltd (a wholly owned subsidiary of the Company (“Killian”)) and its wholly-owned subsidiary TIHT Investment Holdings Pte. Ltd. (“TIHT”) have entered into a Share Purchase Agreement dated 4 September 2014 with Republic Technologies Pte Ltd ("Republic") and Baytree Investments (Mauritius) Pte Ltd ("Baytree") for TIHT to acquire a portfolio of assets, that includes minority stakes in Mitsui Life Insurance Company Limited and CEI Contract Manufacturing Limited, for a total consideration of SGD 129 million (“Consideration”). The Consideration is payable partly in cash and partly by way of financing and an issue of shares in TIHT. Post and subject to completion of the acquisition, TIHT will be held as to 55% by Killian and 45% by Republic.
Both Baytree and Republic are indirect wholly-owned subsidiaries of Temasek Holdings (Private) Limited. The Company shall work closely with Republic, Mitsui Life and CEI to enhance value for our shareholders in the future. The transaction is conducted in the Company's ordinary course of business and therefore does not require the approval of the shareholders of the Company under Chapter 10 of the Listing Manual.
The transaction does not have a significant impact on the Company’s working capital and gearing.
None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, (other than through their respective shareholdings in the Company) in the above transaction."

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