http://www.independent.ie/business/world/temasek-ready-to-invest-as-rally-reverses-losses-1890329.html
Independent.ie, 18 Sep 2009
Temasek ready to invest as
rally reverses losses
Temasek, the parent of Singapore Technologies Telemedia (STT) which
is poised to take over Eircom, recovered from most of its portfolio
losses this year as markets rallied, giving it firepower for new
deals.
Chief executive Ho Ching said any dip in markets could be a buying
opportunity for the $122bn (€83bn) investment firm that is still
open to buying financials and investing in emerging markets.
Temasek, which has telecoms investments across the globe, lost over
an estimated $4bn on selling its stakes in Bank of America and
Barclays, but said it had benefited from investing in rights
issues for its portfolio firms such as Standard
Chartered, since these investments more than doubled by the end of
July.
"We are in a very good
cash position," Ms Ho said at Temasek's annual
review yesterday. "We think there are lots of opportunities in
(China and India) over the long term."
The review showed Temasek's portfolio slumped S$55bn or around 30pc
to S$130bn in the year to end-March. Its portfolio then rose 32pc
to S$172bn by end-July, and its August performance was in line with
market indexes, Ms Ho said.
The firm's value-at-risk was
S$28bn at the end of March, meaning it had a 16pc probability it
would lose that amount or more this financial year, down from a
value-at-risk of S$40bn a year earlier, the review
said.
"We believe the worst of the global meltdown risks are behind us,"
said Ms Ho. "While there are some green shoots of growth, some
structural risks still remain for the medium term," she said.
Temasek is Singapore's second biggest sovereign wealth fund after
the Government of Singapore Investment Corp.
Differences
Ms Ho, the wife of Singapore's prime minister, said Temasek's board
would still search for her successor after chief
executive-designate and former BHP Billiton chief Chip Goodyear
unexpectedly resigned in July over strategic differences.
The investment company, whose sole shareholder is Singapore's
Ministry of Finance, said net profit for the financial year fell
two-thirds to S$6.2bn, as it was hit by losses on financial stocks
and lower contributions from earnings by its portfolio firms, like
DBS Group.
"Like investors everywhere they're just relieved that the market
pulled back from the brink," said David Cohen of Action Economics
in Singapore.
Eircom is preparing for its fifth change of ownership since its
flotation to STT.
Eircom's parent company, Australian fund Eircom Holdings (ERC), has
recommended shareholders accept the AU$225m (€133m) cash and shares
offer made by STT.
The deal involves the transfer of the entire share issue of ERC to
the new entity called Emerald Communications (Cayman) SPC (ECC) and
values the firm at just over €132.5m.
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