Temasek may buy stakes in Minsheng, Medco to expand<\/p>\n
Bloomberg\/Jakarta\/Singapore<\/p>\n
Temasek Holdings Pte, a S$53 billion government fund, may buy
\nstakes in China's first private bank and Indonesia's biggest
\nlisted oil company as it steps up investments abroad.<\/p>\n
Temasek may offer about S$110 million for a 4.7 percent stake
\nin China Minsheng Banking Corp., people familiar with the plan
\nsaid. Separately, the fund said it was selected as the top bidder
\nfor 38 percent of PT Medco Energi Internasional, worth S$245
\nmillion at yesterday's closing share price.<\/p>\n
Chief Executive Ho Ching, wife of Prime Minister Lee Hsien
\nLoong, is increasing investment abroad to boost returns from an
\naverage of 3 percent a year over the past decade. Stakes in Medco
\nand Minsheng Bank would allow Temasek, which has about half its
\nassets in Singapore, to benefit from China's expanding economy
\nand rising energy demand, said economist Timothy Condon.<\/p>\n
\"It's a bet on China,\" said Condon, head of Asian financial
\nmarkets research at ING Groep NV in Singapore. \"With China on the
\nboil, it makes sense to be exposed to commodities. China's
\noverriding concern is securing stable supplies of raw materials.\"<\/p>\n
In the past two years, Temasek has invested S$3.3 billion in
\n35 companies at home and abroad, including a 53 percent stake in
\nIndonesia's Bank Danamon Indonesia and 28 percent stake in Bank
\nInternasional Indonesia.<\/p>\n
Temasek, set up in 1974 to promote local industries, plans to
\nincrease the proportion of its overseas investments to about two-
\nthirds in the next decade from about half, the company said last
\nweek in its first public annual report.<\/p>\n
A Temasek unit is bidding to buy the Medco stake from
\nThailand's PTT Exploration & Production Pcl and other investors.<\/p>\n
The Singapore investment company may also offer to buy the
\nstake in Beijing-based China Minsheng Banking Corp. held by
\nstate- owned China National Coal Group Corp., the people said.
\nThe sale would occur before Minsheng, China's first private
\nlender, seeks about $1 billion in an overseas share sale early
\nnext year, they said.<\/p>\n
Medco shares have risen on the expectation higher crude oil
\nprices will boost profit. The stock gained 60 percent in the past
\nthree months, more than a 16 percent increase in the benchmark
\nJakarta Composite Index. Crude oil futures in New York have
\ngained 66 percent this year.<\/p>\n
\"The Singapore company wants to benefit from the surge in oil
\nprices,\" said Alvin Pattisahusiwa, who helps manage the
\nequivalent of $1.09 billion in Indonesian assets for Fortis
\nInvestments in Jakarta.<\/p>\n
He declined to say whether Fortis holds Medco shares.<\/p>\n
Investments in Asian countries including Indonesia and China
\nmake up 17 percent of Temasek's assets worth S$90 billion.<\/p>\n
\"As Asia develops, powered by a confident China and a
\nconnected India, we believe there is scope for Temasek to reshape
\nits portfolio as an active investor in leading or emerging
\ncompanies in Asia,\" said Temasek Chairman S. Dhanabalan in the
\nannual report.<\/p>\n
Last month, India approved plans by a unit of Temasek to
\ninvest in power projects in the South Asian country along with
\nReliance Energy Ltd.<\/p>\n
Temasek \"is a very big investment company and diversifying
\ninto the international market is obviously a policy that makes
\nsense,\" Mike Hanbury-Williams, who helps manage the equivalent of
\n$210 billion at F&C Asset Management in London, said this week.<\/p>\n
Everitt Investments Pte, owned by Temasek, is bidding to buy
\n44.9 percent of New Links Energy Resources, which owns 85.5
\npercent of Medco Energi, Everitt said in an announcement
\npublished in the Jakarta-based Koran Tempo newspaper.<\/p>\n
Medco shares surged 23 percent after the announcement, the
\nbiggest one-day gain in more than two years.<\/p>\n
\"Medco has good prospects as it's the biggest Indonesian-
\nbased oil producer, with a 7 percent share of the country's oil
\noutput,\" said Agung Wisnu Wardhana, who helps manage Rp 3.8
\ntrillion in Indonesian equities and bonds at Bank Indonesia's
\npension fund, including Medco bonds.<\/p>\n
Temasek last month agreed to buy 9 percent of the shares
\noffered by China Power International Development Ltd. in a $330
\nmillion IPO, according to share sale documents.<\/p>\n
Temasek has stakes in Singapore Airlines Ltd., Telekom
\nMalaysia Bhd. and DBS Group Holdings Ltd.<\/p>",
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