Temasek is gonna sink billions in China. Since it's a business deal
and the risk is there that you may lose money.
it's neve too late to wall in the sheeps, maybe you guys can lobby
s'pore government to stop the deal.
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http://www.forbes.com/finance/feeds/afx/2005/12/26/afx2414903.html
AFX News Limited
Singapore's Temasek to pay higher price for Bank of China
stock-report
12.26.2005, 11:40 PM
BEIJING (AFX) - Singapore's Temasek Holdings will pay a higher
price for 25 pct of its 2 bln usd investment in Bank of China, the
South China Morning Post said, citing sources.
The Hong Kong newspaper said that under a revised pact, aimed at
deflecting domestic criticism that the shares are being sold at too
low a price, the Singapore government-backed investment company
will be permitted to buy five pct of China's second-largest
commercial lender for 1.5 bln usd.
These will be new shares but purchased before the bank makes its
initial public offer in Hong Kong next year.
Temasek will then pay another 500 mln usd for additional shares at
the time of the IPO, the report said. Those shares will be at a
significantly higher price.
Caijing magazine reported yesterday that the Bank of China's main
shareholder, Central Huijin Investment, had agreed to a revised
formula whereby Temasek will be allowed to buy a five pct stake
instead of 10 pct as originally planned. The original deal called
for Temasek to pay 3.1 bln usd at 1.2 times the lender's book value
with half of the shares bought from Central Huijin and half new
shares issued by the bank.
The revised deal was approved by the State Council, or cabinet,
last week, according to the newspaper.
Central Huijin had opposed the original deal out of concern that
Temasek might gain too much influence over the domestic banking
sector. It also may have been reacting to the domestic criticism
over the price paid by Temasek.
Temasek also owns more than five pct of China Construction
Bank.
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