Temasek buys 11.55% Stanchart stake

Singapore’s Temasek Holdings is poised to become the single largest shareholder in Standard Chartered following an agreement to acquire an 11.55 percent stake in the UK bank which has a strong Asian franchise.

Temasek Holdings, the investment arm of the Singapore government, has agreed to acquire an 11.55 percent stake in UK lender Standard Chartered (Stanchart) for an estimated $4 billion (€3.3 billion).

The estate of Tan Sri Khoo Teck Puat, the largest individual shareholder of Stanchart, is to sell 152,399,222 ordinary shares, equivalent to a 11.55 percent stake, to Temasek.

The value of the pending transaction was not disclosed but at least one report estimates the deal is worth some $4 billion.

The transaction is subject to relevant regulatory approvals in certain jurisdictions, according to a joint statement from Temasek and the Tan Sri Khoo Teck Puat Estate.

In addition to the newly-acquired stake, Temasek directly and indirectly holds about 0.07 percent of Stanchart’s ordinary shares, the firm said in a statement.
 
Temasek has been a keen investor in Asia’s financial sector, with investments in eleven banks across Asia. If the latest acquisition successfully completes, Standard Chartered will be the twelfth bank in its portfolio. Its network across Asia, the Middle East and Africa will also give Temasek greater exposure to the region’s financial sector.
 
Most recently, Temasek invested approximately $400 million to subscribe to convertible bonds issued by Taiwan’s E.Sun Financial Holding. Upon full conversion, the investment will represent around 15 percent of E.Sun’s issued share capital.
 
Tan Sri Khoo, who passed away in February 2004, was hailed one of Standard Chartered “white knights” after staving off a hostile takeover by Lloyd’s Bank in 1986 by increasing his shareholding in the days leading up to the deadline for the bid. Tan Sri Khoo started up Malayan Banking, known today as Maybank, in 1960 and developed a network of 106 branches across Singapore and Malaya (later Malaysia).