Sovereign Wealth Fund Institute

The press release states, “CME Group, the world’s leading and most diverse derivatives marketplace, and Oman Investment Fund, a sovereign wealth fund of the Sultanate of Oman, today announced that they will increase their investments in the Dubai Mercantile Exchange to enable it to continue growing its business.

As part of the restructuring of the DME’s equity shareholding, a recapitalization arrangement will increase the stake in DME held by CME Group’s NYMEX division from 25 percent to 50 percent. Oman Investment Fund will increase its holding to 29 percent; a subsidiary of Dubai Holding will retain 9 percent; and 12 percent will be held on a non-voting basis by strategic investors, including Vitol, Shell, JP Morgan, Morgan Stanley, Goldman Sachs and Concord Energy.

Bryan Durkin, CME Group Chief Operating Officer and Managing Director, Products and Services, said: “The deepening of our relationship with DME further serves our strategy of providing risk managers and investors with access to key benchmark products via our global distribution networks. By committing CME Group’s resources and know-how to DME’s increasingly well-received product set, participants in the Middle East and Asia will be able to access transparent pricing and risk management products as global energy markets focus ever further eastward.”

Hassan Al Nabhani, Chief Executive Officer of Oman Investment Fund, said: “DME’s development into a prominent venue for price discovery will prove to be of significant strategic and financial value for the oil markets. The exchange continues to attract customers from among the key participants in the global energy industry. Our long-standing partnership with CME Group, the world’s leading derivatives marketplace, is building the platform for the next phase in DME’s development.”

Ahmad Bin Byat, Chief Executive Officer of Dubai Holding, said: “Our partners’ increased investment in the DME is a vote of confidence in the future growth of the exchange. Today’s announcement marks a new phase in the development of the DME and we look forward to building on the real progress which has been made to date.”

Ahmad Sharaf, Chairman of the DME, said: “We welcome the continued commitment of our partners. With liquidity in the flagship Oman crude oil futures contract steadily growing and physical delivery reaching new heights in 2011, this recapitalization positions the DME to enter the next phase of development for existing and future customers seeking to manage price risk for crude oil markets East of Suez.”

To build on the success of the partnership to date, the new arrangement puts a robust plan in place to grow the business and ensure that it continues to deliver value to its customers and investors. With the injection of new funds, the DME will retain its independence while benefiting from technology updates, product development support, technical services and CME Group’s skills and expertise in developing global markets.”

Read more: Press Release

Singapore’s Temasek Holdings along with SAP Venture, the investment arm of SAP AG, as well as Crosslink Capital, DAG Ventures, Triangle Peak Partners, and Benchmark Capital invested US$ 30 million into Marin Software. Founded in April 2006, Marin Software publishes applications that manage online advertising campaigns. This is not Temasek’s first investment in the San Francisco Bay Area. In fact, Temasek Holdings has been an active investor in startups for well over 15 years.

By investing in Marin Software, Temasek Holdings can increase customer introductions and market knowledge in the Southeast Asian business region.

Temasek Holdings through its sovereign wealth enterprise (Allamanda Investments) sold 14.7 billion rupees or around US$ 300 million shares in ICICI Bank Ltd. ICICI Bank Ltd is a major bank in India. The Singapore sovereign wealth fund joined with the Carlyle Group LP in selling positions in India. Since 2009, Temasek Holdings and their counterpart Government of Singapore Investment Corp (GIC) have been reducing exposure in ICICI Bank.

Temasek Holdings and Singapore’s GIC combined will hold less than 4% of the bank.

India has opened up their markets to institutional investors in recent years, especially with its takeover rules from foreign public investors.

EIG Global Energy Partners, LLC (EIG), an institutional investor in the global energy sector, has reached a definitive agreement with the China Investment Corporation (CIC). The CIC is in agreement to purchase a minority stake in EIG.  The CIC is an investor in EIG-managed funds.

The China Investment Corporation is betting big on natural resources, energy, and global infrastructure. By investing in an asset manager that specializes in energy and infrastructure, the CIC could potentially learn and benefit from possible expertise and robust deal flow.

Separated in January 2011, EIG was formerly the Energy & Infrastructure Group at Trust Company of the West (TCW). The CIC has also invested in Chesapeake Energy Corporation. In November 2011, Chesapeake sold EIG $500 million of perpetual preferred shares of a newly formed entity, CHK Utica, L.L.C.

The press release states, “The EBRD and the Russian Direct Investment Fund (RDIF) have agreed to acquire a 6.29 percent and 1.25 percent stake respectively in Russia’s MICEX-RTS stock exchange. The investment is part of a long-term strategy to promote the development of local capital markets in Russia and broaden the regional and international appeal of this recently unified exchange.

EBRD and RDIF’s equity investment supports Russia’s goal of transforming Moscow into a globally important and competitive international financial hub. This investment breaks new ground for the Bank as this is the first time the EBRD has invested in a trading exchange in one of its 29 countries of operation. For the RDIF, the transaction represents its first investment only six months after being established.

The RDIF, established in 2011 under the aegis of the Russian government, is a USD 10 billion investment fund that seeks to maximize returns by making investments in the leading companies of fast-growing sectors across the Russian economy, investing in partnership with leading financial institutions and corporations.

“The turmoil in the world economy gives added urgency to the need to strengthen and deepen Russia’s capital markets so that they can provide the liquidity which the domestic economy needs to access and the creation of a unified exchange represents an important milestone in that process,,” said the EBRD’s Varel Freeman.

“Through this investment, the EBRD hopes to contribute to increasing the attractiveness of MICEX-RTS so that it becomes the preferred exchange for Russian issuers and traders, as well as investors with an appetite for Russian stocks and other financial instruments,” Mr. Freeman added.

“This transaction verifies RDIF’s core mission of attracting investment capital to support market-leading Russian companies. In addition, this investment is an important building block in strengthening Moscow as an international financial center. The RDIF can now fully leverage its extensive relationships with sovereign wealth funds and other leading investors to pursue additional pre-IPO investment in MICEX-RTS and to further improve its IPO prospects,” said Kirill Dmitriev, Chief Executive Officer of the RDIF.

“We are excited to welcome these new shareholders of the biggest Russian exchange. This investment proves that the reforms that are being implemented in Russia contribute considerably to creating and promoting a favourable investment climate that attracts high-calibre financial investors. This is a vital factor for building in Moscow an international financial centre,” said MICEX-RTS’s President, Ruben Aganbegyan.

“The presence of such prominent institutions among the shareholders also shows that the exchange pursues best practices, meets the highest international standards and has significant growth potential. We thank our new shareholders for their confidence in our company and look forward to doing business together,” Mr. Aganbegyan added.

The EBRD’s stake will give the Bank the right to nominate a candidate for election to its 19-strong Board of Directors, a body which determines the exchange’s development strategy and agrees listing and reporting standards.

Russia’s stock market is the most developed in the Commonwealth of Independent States (CIS). MICEX-RTS presents itself as one of the top-20 global securities exchanges in terms of trading volume, as well as one of the top-10 global futures and options markets as regards derivatives, again as measured by trading volumes.”

Read more: RDIF Press Release

Asian sovereign wealth funds are keen on China’s growing retail consumer sector. Both of the Singapore SWFs have a deep history investing in China.  On January 20, 2012, an affiliate of the Government of Singapore Investment Corporation Pte Ltd and TPG Capital will invest in convertible bonds in Hong Kong-listed China sportswear brand Li Ning Co. Ltd. Singapore’s GIC already holds around 63 million ordinary shares in capital in Li Ning Co. Ltd.

Convertible Bonds Subscription
5-Year Convertible Bonds
4% Annual Interest Rate
TPG Capital – RMB561 million – (approximately HK$690 million)
GIC Affiliate – RMB189 million – (approximately HK$232 million)

Assuming the convertible bonds are fully converted, GIC will hold approximately 93 million ordinary shares, representing approximately 8% of the total enlarged share capital in Li Ning Co. Ltd.

Continental European financial institutions are in dire need of capital due to regulations, a frigid regional credit market environment, and the conditions of their balance sheets. Institutional money managers are watching who will step in first to invest in these upcoming rights issues. In 2007 and 2008 sovereign wealth funds mostly from Asia and the Middle East participated in the bailout of several prominent Western financial institutions. Some SWFs made money, some lost.

Middle Eastern sovereign investors are carefully allocating capital to select European banks. Italy’s UniCredit S.p.A’s €7.5 billion rights issue was off to a sluggish start.

Aabar Luxembourg Sarl, a subsidiary of Aabar Investments plans to raise its stake in Italy’s UniCredit S.p.A to 6.5% once the bank’s capital raise is completed. Aabar Investments is owned by Abu Dhabi’s International Petroleum Investment Company (IPIC). Aabar Investments has a history of investing in UniCredit S.p.A.

The Central Bank of Libya and the Libyan Investment Authority are also shareholders in the bank.

South Africa has been a key investment destination for China due to its natural resources, lower political risk profile compared to other African nations, and growing demographics. In fact, the China-Africa Development Fund has been an active investor in the country. The China Investment Corporation (CIC) will purchase a 25% stake in the Shanduka Group for 2 billion rand (US$ 245 million). Johannesburg-based Shanduka is led by former secretary-general of the ruling African National Congress Cyril Ramaphosa and has investments in McDonald’s franchises and coal. It is an unlisted holding company. Recently, the Shanduka Group gained majority control of a coal venture that it operates with Glencore. It increased its stake in Shanduka Coal from 30% to 50.01%, giving it control. Shanduka’s coal mining operations include Springlake, Middleburg Townlands, and Graspan.

The CIC is buying the shares mostly from Investec and Old Mutual Private Equity. Standard Bank was the exclusive financial advisor for the Shanduka Group.

“This partnership will allow us to jointly explore future investment opportunities in South Africa and other parts of Africa,” Ramaphosa said in the statement regarding the recent transaction.

The press release states, “GENIVAR Inc.(“GENIVAR” or the “Company”) announced today that it has completed an equity private placement (the “Private Placement”) of 6,500,000 common shares from treasury at a price of $24.57 per share for aggregate gross proceeds of $159,705,000. Participants in the Private Placement are Canada’s top two institutional investors, the Canada Pension Plan Investment Board (“CPPIB”) and the Caisse de dépôt et placement du Québec (the “Caisse”), each of whom invested a gross amount of $79,852,500.

Proceeds from the Private Placement will primarily be used to repay debt and for general corporate purposes.

“We are very happy to have received such support from Canada’s two largest institutional investors. CPPIB and the Caisse’s decision to support GENIVAR, is a sign of their commitment to our domestic and international growth strategy,” stated Pierre Shoiry, President and Chief Executive Officer of GENIVAR. “This financing will allow us to continue growing our Canadian business while moving forward on executing our international expansion plans. Our objective is to deliver on our disciplined strategy, which has proven successful in the past and will create long-term value for our shareholders.”

“In a time of great market volatility, our strong balance sheet and financial position will firstly allow us to execute our growth strategy, and secondly, ensure the sustainability of our firm in the long run with two strong partners alongside GENIVAR,” commented Alexandre L’Heureux, Chief Financial Officer of GENIVAR. “Both institutions have clearly signaled their long-term commitment to GENIVAR, in part by agreeing to have portions of their acquired common shares locked-up for up to 18 months before such common shares can be freely tradable. The institutions are also subject to certain other investment restrictions. Additionally, in keeping with their interest in supporting our international expansion plans, CPPIB and the Caisse have each been granted a pre-emptive right to participate pro rata in future offerings of the Company.”

“We believe that GENIVAR’s strong and experienced management team combined with its future growth opportunities, both in Canada and globally, make this a compelling investment for CPPIB,” said Scott Lawrence, Vice-President and Head of Relationship Investments, CPPIB. “This investment builds on our Relationship Investments strategy to be a cornerstone minority shareholder in public companies where CPPIB can participate in, and contribute to, their future success.”

“The Caisse is proud to invest in this Quebec company that has become a Canadian leader in the engineering consulting industry,” explained Normand Provost, Executive Vice-President Private Equity and Chief Operations Officer at the Caisse. “By supporting GENIVAR in its international development projects and its continued growth in Canada, we once again combine returns with economic development in Quebec.”

GENIVAR has also agreed to provide CPPIB and the Caisse with the right to nominate one individual each to GENIVAR’s board of directors so long as CPPIB and the Caisse each own greater than 9.5% of GENIVAR’s outstanding common shares.

Pursuant to this Private Placement, the number of common shares of GENIVAR issued to CPPIB and the Caisse represents 19.92% of the outstanding common shares of the Company. The number of GENIVAR’s common shares held by CPPIB now is 3,257,700 or 9.98% of common shares outstanding, while the Caisse owns 3,250,000 or 9.96% of GENIVAR’s common shares outstanding.
This Private Placement, which does not require shareholders’ approval, has been approved by the Toronto Stock Exchange.”

Read more: Press Release

According to the press release, “Dexia, Precision Capital and the State of the Grand Duchy of Luxembourg announce that they have entered into a binding memorandum of understanding on the acquisition by Precision Capital and the Grand Duchy of Luxembourg of the 99.906% stake in Dexia Banque Internationale à Luxembourg S.A. owned by the Dexia Group.

Precision Capital, a Qatari investment group, will acquire 90% of the stake, the remaining 10% will be acquired by the Grand Duchy of Luxembourg.  The transaction price values 100% of the shares in Dexia Banque Internationale à Luxembourg at EUR 730 million.

The participation of Dexia Banque Internationale à Luxembourg in Dexia Asset Management Luxembourg and RBC Dexia Investor Services Limited will be disposed of separately. The portfolio of Legacy securities of Dexia Banque Internationale à Luxembourg as well as its stakes in Dexia LDG Banque and Parfipar will be transferred to Dexia prior to the closing of the transaction. The parties will negotiate the final legal documentation of the transaction in the coming weeks. The transaction remains subject inter alia to all required regulatory approvals, including approval by the European Commission. Dexia will keep the social partners duly informed. The sale of Dexia Banque Internationale à Luxembourg is one of the disposals that were contemplated by the Dexia Group as announced on 20 October 2011.”

Read more: Dexia Press Release

The Libyan Investment Authority (LIA) is aggressively trying to get back into the swing of things. Recently, Indonesia-based PT Medco Energi International Tbk through a wholly owned subsidiary Medco International Ventures Limited signed a commercial agreement with the Libyan Investment Authority (LIA) for its Area 47 field. MedcoEnergi is an integrated energy company.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

On December 19th, 2011, HRH Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud and Kingdom Holding Company (KHC) invested a combined US$ 300 million in Twitter. This represents a strategic stake in Twitter. There are more than 100 million active users on Twitter.

Kingdom Holding Company is a public holding company from Saudi Arabia. Headquartered in Riyadh, it is majority controlled by HRH Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud.

According to the press release from KHC, Prince Alwaleed commented: “Our investment in Twitter reaffirms our ability in identifying suitable opportunities to invest in promising, high-growth businesses with a global impact.”

UK utility infrastructure remains in high demand. The Abu Dhabi Investment Authority (ADIA) plans to purchase a 9.9% stake in Kemble Water Limited, the holding company of Thames Water. ADIA is purchasing the stake from a consortium of investors led by Macquarie called Kemble Water Holdings Limited. The private regulated utility company is responsible for the public water supply and waste water treatment in parts of Greater London, Thames Valley, Surrey, and other areas. The utility is regulated by the Office of Water Services.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The Qatar Investment Authority (QIA) is a major player in European real estate, whether it is a finished asset or development.  Qatar Holdings LLC has made its first investment in a class-A office project in Poland. The sovereign wealth enterprise has signed a contract to purchase the development in Miasteczko Orange office complex in Warsaw from developer Bouygues Immobilier Polska. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The press release states, “the Ontario Teachers’ Pension Plan (Teachers’) today announced it has reached an agreement to sell its 79.53% ownership share in Maple Leaf Sports and Entertainment (MLSE) to Bell and Rogers Communications Inc.

The purchase price for Teachers’ interest is $1.32 billion, based on an enterprise value of just over $2 billion.

Although Teachers’ announced on November 25 that it would retain its MLSE ownership position, it subsequently was approached by Bell and Rogers with an unsolicited offer that meets all of its original terms and conditions for sale. The sale agreement follows an eight-month review process of numerous expressions of interest in MLSE.

“MLSE is one of Teachers’ longest standing and most successful investments,” said Jane Rowe, Senior Vice-President, Teachers’ Private Capital. “We are proud of this iconic company, in which we first invested in 1994. It is second to none in the industry and has a very bright future. We believe that Bell and Rogers, with their MLSE partner Kilmer Sports, will deliver on the company’s potential.”

The transaction is expected to close in mid-2012 and is subject to regulatory and league approvals. Larry Tanenbaum will continue to serve as Chair of MLSE and as a Governor of the NHL, the NBA and Major League Soccer.”

Read more: OTPP Press Release

The press release states, “Samsung C&T and the Korea National Oil Corporation (“KNOC”) will jointly acquire US oil and gas company Parallel Petroleum LLC (“Parallel”). Samsung C&T Oil & Gas Parallel Corp., Samsung C&T’s local subsidiary in the US, and KNOC signed a Purchase and Sale Agreement with PLLL Holdings, LLC, which owns Parallel, in Midland, Texas on November 29th, 2011. Upon completion of the transaction, Samsung and KNOC will respectively own 90% and 10% of Parallel.

Parallel currently operates 8 oil and 2 gas producing fields in the states of Texas and New Mexico. Parallel produces approximately 8,400 barrels of oil and gas per day and has approximately 69 million barrels in reserves.

Through the deal, Samsung C&T will secure 50 professionals experienced in developing oil and gas fields. This will give Samsung C&T the ability to enhance its industry capabilities and strengthen its competitiveness.

Along with the investment in the Ankor oil fields in 2008, the acquisition of Parallel marked the significant foundation for the expansion of our natural resources business in the US market.

In 2008, Samsung C&T and KNOC jointly acquired the Ankor assets (daily production of approximately 16,000 barrels and reserves of approximately 71 million barrels) located in the Gulf of Mexico. Ankor currently produces oil from 17 platforms in 5 offshore oil fields, and Samsung C&T produces and explores for oil and gas from 10 other oil and gas fields around the world.”

Read more: Press Release

It seems that Middle Eastern based sovereign funds are more keen on investing in hospitality and resort developments compared to their Asian and European peers. This is good news for the Kingdom of Morocco.  Tourism is a key source of diversifiable revenue for the North African Kingdom of Morocco. The tourism industry in Morocco employs just below 500,000 people. Cash-strapped Morocco still suffers from high unemployment, a reliance on material exports, and has a young demographic profile.

In December 2010, Gulf sovereign investors parked money into the region.  Last week, the Qatar Investment Authority (QIA) and Morocco agreed to create a 50-50 joint venture worth US$ 2 billion that targets major development projects in Rabat.

Rabat is the capital and third largest city in Morocco.

In another deal, Qatar Holdings, the Kuwait Investment Authority’s Al Ajial Investments and Aabar Investments agreed with Morocco’s Fund for the Development of Tourism to inject US$ 2.5 billion into a newly-created vehicle called Wessal Capital. Wessal Capital will focus on developing new resorts in Morocco.

Proposed Equity Capital Structure of Wessal Capital

• 25% Qatar Holdings
• 25% Al Ajial Investments
• 25% Aabar Investments
• 25% Morocco’s Fund for the Development of Tourism

Singapore’s Temasek Holdings along with other investors invested a round of US$ 89 million in Portola Pharmaceuticals via preferred equity. Portola Pharmaceuticals is a San Francisco biotech company that is working on an anti-clotting drug called betrixaban. This financing is for pushing the development through its Phase III betrixaban trial. Eight months ago Merck dropped its collaborative efforts with Portola Pharmaceuticals. Temasek Holdings has been an active investor in venture capital investments in the Silicon Valley.

According to the press release, “the Caisse de dépôt et placement du Québec has announced that it has entered into definitive agreements with ConocoPhillips to purchase its 16.55% interest in Colonial Pipeline Company and Colonial Ventures LLC (“Colonial”) for US$850 million.

Colonial Pipeline is the largest refined petroleum products pipeline in the United States. It extends more than 8,800 kilometres between the Gulf of Mexico and the Northeastern U.S. and transports the equivalent of 2.3 million barrels per day.

Prior to being finalized, the transaction will be subject to a right of first refusal (ROFR) by the shareholders of Colonial Pipeline. Based on the outcome of the ROFR exercise, the Caisse could close the transaction during the first quarter of 2012.

“The Caisse is always interested in quality assets that yield stable, long-term returns,” said Normand Provost, Executive Vice-President, Private Equity and Chief Operations Officer at the Caisse de dépôt et placement du Québec. “This particular investment targets an infrastructure project in a regulated industry that we know well through our investments in Gaz Métro, Interconnector, Enbridge and Fluxys.”‘

Read more: Press Release

The China Investment Corporation (CIC) purchased a portion of Bank of America’s holdings in China Construction Bank (CCB) in a transaction worth around US$ 1.75 billion (2.76 billion shares). Bank of America is attempting to strengthen its capital base and build a stronger balance sheet.

According to the press release, “An investor group comprised of Sony Corporation of America (“SCA”), in conjunction with the Estate of Michael Jackson; Mubadala Development Company PJSC; Jynwel Capital Limited; the Blackstone Group’s GSO Capital Partners LP; and David Geffen (the “Group”) announced today the execution of a definitive agreement, whereby the Group will acquire EMI Music Publishing from a wholly-owned subsidiary of Citigroup, Inc. (“Citi”) for total consideration of $2.2 billion.

The transaction is subject to certain closing conditions, including regulatory approvals. Following the acquisition, Sony/ATV Music Publishing and its strong and experienced management team will help oversee EMI Music Publishing on behalf of the Group. Sony/ATV Music Publishing is co-owned by subsidiaries of SCA and trusts formed by the Estate of Michael Jackson.

EMI Music Publishing is a world-leading popular music publisher with a vast collection of musical compositions and a roster of highly talented songwriters. The business represents and administers one of the world’s most comprehensive and diverse catalogs of over 1.3 million music copyrights covering all genres, periods and territories of the world.

EMI Music Publishing represents some of the most successful writers working in the music industry today including Beyoné, Drake, Jay-Z, Norah Jones, Alicia Keys, P!nk, Scissor Sisters, Rihanna, Stargate, Usher, Kanye West, Pharrell Williams, Tinie Tempah, Duffy, Arcade Fire, Dallas Davidson, Don Omar, Alan Jackson and Hillary Scott. Its remarkable catalog spans the decades with some of the greatest hits dating from the early 20th century right up to today. EMI Music Publishing holds rights to some of the greatest Motown hits from the 1960s including Baby Love, Heard It Through The Grapevine, and My Girl, as well as other timeless standards, such as Bohemian Rhapsody, Every Breath You Take and You’ve Got A Friend. Its catalog is home to a wide range of film and TV scores, including some of the most recognizable songs of all time such as New York, New York, Over the Rainbow and Have Yourself A Merry Little Christmas.”

Read more: Sony Press Release

The Alberta Investment Management Corporation (AIMCo) has acquired a 50% interest in Inversiones Grupo Saesa Limitada (Grupo SAESA) from Morgan Stanley Infrastructure Partners. Grupo SAESA is a regulated electricity transmission and distribution company in Chile. It is the second largest electricity distributor in Chile and delivers electricity to 16% of Chile’s population.  The other 50% owner is the Ontario Teachers’ Pension Plan.

AIMCo is not new to Chile and is attracted to their established and stable investment regulatory environment. Chile provides excellent opportunities in core infrastructure investments for sovereign investors due to their support of foreign capital investment. AIMCo has already invested $850 million in Autopista Central, a six-lane toll road in Chile.

Market Share by 2010 Sales (Chile)

• Chilectra 44%
• CGE 29%
• Otros 11%
• Chilquinta 8%
• Grupo SAESA 8%

Established in November 2002, the National Technology Enterprises Company (NTEC) is a sovereign wealth enterprise of the Kuwait Investment Authority (KIA) that invests in technology companies and venture capital funds. NeuString received Series B financing from investors such as NTEC, Intel Capital, along with new and existing private shareholders. NTEC was capitalized with US$ 350 million and has invested in over 23 direct investments and 10 venture capital funds.

NeuString is a software company based in Dubai.

According to the press release, “Avolon, the international aircraft leasing group, today announces that it has successfully secured a third round of equity capital with a US$300 million equity commitment from the Government of Singapore Investment Corporation (‘GIC’), subject to customary regulatory approval.”

The press release further states, “Avolon announces a US$300 million equity capital commitment from GIC, a leading sovereign wealth fund, subject to customary regulatory approval. Avolon has now secured a total of US$1.4 billion in equity capital from GIC and leading private equity firms, Cinven, CVC Capital Partners and Oak Hill Capital Partners. The equity commitment from GIC adds geographic diversity to Avolon’s capital base and enhances its ownership structure. GIC joins leading private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners as equity investors in Avolon with each bringing significant experience and complementary strengths to the Avolon business.”

Read more: Press Release

Temasek Holdings could raise up to S$ 800 million (US$ 632 million). The debt raise is through a combination of S$ 650 million in zero coupon guaranteed exchangeable bonds due 2014 and a greenshoe option to increase the size of the issue by an additional S$ 150 million.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The Kuala Lumpur International Financial District (KLIFD) is a joint development project to strengthen and centralize Kuala Lumpur’s finance hub.  The KLIFD also wants to be a destination for the Islamic finance industry.  Kuala Lumpur has over 1.6 million people and Bursa Malaysia is based in the city.

The US$ 8 billion (RM 25.07 Billion) project is being jointly developed by the Mubadala Development Company and 1Malaysia Development Bhd (1MDB).  Mubadala sees a lot of investment potential in Southeast Asia.  The Malaysian government is backing this initiative.  One huge incentive to compete with Hong Kong and Singapore is a 100% income tax exemption for a 10-year period for KLIFD-status company.

The press release states, “European Goldfields is pleased to announce that it has agreed heads of terms (“Heads of Terms”) with Qatar Holding LLC (“Qatar Holding”) for the provision of a US$600 million 7 year Senior Secured Loan Facility with Equity Participation (the “Facility”).

Pursuant to the Heads of Terms, the Facility will be structured as a US$600 million 7 year loan at an interest margin of 7% above 6-month Libor per annum and will be repayable in 8 equal instalments commencing in 2015 (the “Facility Agreement”). The loan will be secured over the Company’s Greek assets, including a pledge of the shares of all intermediate holding companies, and will contain certain informational and financial covenants. The Equity Participation feature of the Facility will encompass the issuance to Qatar Holding of warrants (the “Warrants”) for the purchase of 40,444,913 shares in the Company at a strike price of C$9.08 per share (equivalent to the 5 day VWAP on the TSX).

The Facility will be used primarily for the development of the Company’s Skouries and Olympias gold projects in Greece, for which the Environmental Permit was recently granted, as well as general corporate purposes.

The Company also proposes to offer unsecured loan notes with warrants for US$150 million (the “Loan Notes”) to be made available to existing shareholders on the same economic terms as the Facility. These Loan Notes will be listed on an international exchange and will include the normal terms and conditions for such an instrument. The aggregate proceeds of US$750 million from the Facility and the Loan Notes are expected to fully finance the Company’s entire project portfolio.

The Company has also been advised that in two separate transactions, Qatar Holding has acquired from Aktor Construction International Limited (“Aktor”) and Mr. Dimitrios Koutras collectively, an aggregate 18,202,687 shares at C$10 per share (representing 9.9% of the undiluted share capital of the Company) and has entered into a call option agreement allowing it to acquire a further 9,373,390 shares in the Company at a price of C$13 per share. As a result and prior to the exercise of the call option, Aktor now holds 22,447,246 shares (representing 12.2% of the undiluted share capital of the Company) and Mr. Koutras holds 5,521,387 shares (representing 3.0% of the undiluted share capital of the Company).

The Facility and related issuance of warrants are subject to exclusivity, definitive documentation and shareholder and regulatory approval.

Martyn Konig, Executive Chairman and President commented, “This Facility from Qatar Holding represents not only a significant commitment to the Company, but also to Greece. In these very uncertain times, these financings will provide all of the development capital required to bring the group’s entire project portfolio into production and allow us to accelerate the development of all our projects. As such, this marks another very significant milestone on our path towards becoming the largest gold producer in Europe. Furthermore, we are delighted to welcome Qatar Holding as a significant shareholder and key strategic partner, particularly as this is their first investment into the gold sector.

These transactions deliver a definitive solution to a number of key issues overhanging the Company: we have secured debt financing which, in terms of both size and coupon, is otherwise unavailable in today’s challenging market conditions, thereby delivering a complete financing solution for our projects; the presence of Qatar Holding as a strategic partner further demonstrates great confidence in Greece as well as securing a liquidity event for our Greek partners Ellaktor, without direct market impact.”

Commenting on the transaction, Mr. Ahmad Mohamed Al-Sayed, Managing Director and Chief Executive Officer of Qatar Holding, said: “”This transaction reflects an outcome of the Memorandum of Understanding between the State of Qatar and the Hellenic Republic of Greece, signed in New York during 2010. Our latest investment helps to further diversify our investment portfolio in the commodities sector, with a specific position in gold resources and another long-term partner secured for the future. We see the transaction as one that will create a lot of value for all shareholders, and represents our positive view on Greece in general.”"

Read more: Press Release

The Korea Investment Corporation (KIC) is holding off for now on purchasing more shares of Bank of America Corp. Initially, the KIC was thinking about raising their stake in Bank of America by reinvesting the dividend it received from the bank.

KIC became an investor in Bank of America after its Merrill Lynch shares were converted.

Bank of America Corp has been hurt by a barrage of mortgage-related losses and large lawsuits. Recently, its credit ratings were cut by Moody’s Investors Services.

Jack Ma

Temasek Holdings is an existing shareholder in the Alibaba Group. DST Global, Yunfeng Capital, Silver Lake, and Temasek Holdings are participating to invest in the Alibaba Group. Alibaba Group is one of China’s biggest e-commerce companies. The key objective of the investment is to provide liquidity to Alibaba’s employees. It is said the amount of stock from Alibaba employees that was being purchased is around US$ 1.6 billion. More and more internet companies are using private investment rounds to let employees cash out shares.

Citic Securities is planning to list in Hong Kong by October 6th. The securities company is the largest in China by market value. Sovereign wealth funds have been investing in Chinese financial firms and banks for quite some time. Earlier we saw tremendous sovereign investor interest in the IPO of Agricultural Bank of China.  In this current environment, capital raising deals present many challenges to companies.

In getting a billion dollar plus corporate capital raise deal done, cornerstone investors involving sovereign wealth funds are almost a necessity.

Citic Securities has already fortified six cornerstone investors. These include the sovereign wealth funds of Temasek Holdings and the Kuwait Investment Authority. Including BTG Pactual SA which has received SWF investment in the past, the six cornerstone investors plan to purchase US$ 850 million in stock, or at least 44% of the offered shares.

Khazanah Nasional Berhad is a Malaysian sovereign wealth fund. Khazanah is planning to raise capital by issuing the world’s first yuan-denominated Islamic bonds, a blend of Chinese currency and Islamic financial structure. The raise amount is targeted at 500 million yuan (US$ 78.2 million), which is a small amount; however, we believe Khazanah and other Islamic financiers are testing the waters to Chinese investors. The sale of the Sukuk will likely be in Hong Kong, hence the yuan denomination. Hong Kong has a very successful Dim Sum market and is beginning to take market share away from London and New York in terms of debt raises.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Invest AD which is a sovereign wealth enterprise of the Abu Dhabi Investment Council (ADIC) partnered with SB Holdings Inc. Together they created the Invest AD – SBI Africa Fund. The fund was established in January 2011 and has a total commitment amount of US$ 75 million. The mandate of the fund is to invest in both listed and unlisted companies in Africa.

The JV Fund has made their first investment by participating in the initial public offering of the Bank of Kigali Limited.   [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Sovereign investors look at all types of investments. One area of high interest involves anything to do with the energy industry, especially transportation and distribution. The shipping industry is growing and companies in this sector tend to have attractive operating margins especially in the Eastern Hemisphere.

In August 1, 2011, the China Investment Corporation (CIC) participated in an investment round with other investors in Diamond S Shipping Group for US$ 600 million. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The market adoption of natural gas as a source for vehicle fuel is growing rapidly in the world. Natural gas fueling services are positioned to propagate in the United States and Canada. In North America, Clean Energy Fuels Corporation is a major provider of natural gas fuel for transportation.

The company has operations in LNG and CNG vehicle fueling. Three investment entities, including Temasek Holdings have agreed to invest US$ 150 million in the company through the form of 7.5% convertible notes due in 2016. Notes will be convertible to shares of common stock at US$15.00 per share. The other major investor in this deal is RRJ Capital founded by Richard Ong. Earlier in April 2011, Temasek Holdings partnered with RRJ Capital on a deal to take a large controlling stake in Frac Tech Holdings.

Deal Investors:

1. Springleaf Investments Pte. Ltd – Sovereign Wealth Enterprise of Temasek Holdings
2. Lionfish Investments Pte Ltd – Subsidiary of Seatown Holdings International Pte. Ltd
3. Greenwich Asset Holding Ltd – Subsidiary of RRJ Capital Master Fund I, L.P.

“This investment by Temasek, Seatown and RRJ demonstrates their confidence in the opportunity for fueling natural gas vehicles as well as in Clean Energy’s position as the leader in growing this market,” said Andrew J. Littlefair, President and CEO of Clean Energy. “Our development program for fueling station-building is expanding rapidly and we welcome the support provided by the funds.”

Source: Press Release

BOC Fullerton Community Bank is a joint venture between the Bank of China Ltd and Fullerton Financial Holdings. Fullerton Financial Holdings is a sovereign wealth enterprise of Temasek Holdings. Temasek and other sovereign wealth funds are investing in the Chinese financial sector as the middle class continues to grow in China. The joint venture is planning to create 20 to 30 rural banks. According to senior executives this will occur before the end of 2011.

The Chinese banking industry is expanding access to capital for rural communities. Loans are for small business owners, medium-sized enterprises, farmers, and individuals. Each rural bank is operating under the BOC Fullerton Community Bank banner but is fully independent.

On March 4, 2011, the first community bank opened under the JV banner. It was in Qichun county which has just under 1 million people. It had registered capital of RMB 30 million.

The China Investment Corporation plans to purchase a 7% stake in the Bank of Shanghai. The International Finance Corporation (IFC) which is a member of the World Bank Group is selling the stake. The IFC became a shareholder of the Bank of Shanghai in 1999. They made an initial investment of US$ 22 million for a 5% stake. This was then followed up by taking part in a rights issue in 2000. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The press release states, “as a first milestone of this cooperation, advanced exclusive talks on a €2.3 billion minority investment by CIC in the Exploration & Production division of GDF SUEZ to accelerate the development and on the €0.6 billion acquisition by CIC of a 10% stake in the LNG Atlantic liquefaction plant in Trinidad and Tobago.

GDF SUEZ and China Investment Corporation (“CIC”) have signed a Memorandum of Understanding (“MoU”) for cooperation across multiple businesses and regions, in particular in Asia Pacific. GDF SUEZ and CIC will cooperate on a non-exclusive basis to help accelerate their respective strategies by exploring areas of cooperation and co-investment opportunities. The MoU will be deployed across GDF SUEZ Group’s businesses (gas, power, water and waste, and energy efficiency services) and sets up the framework for cooperation in three areas:

(i) joint investment opportunities in existing and new energy-related projects in Asia Pacific;

(ii) financing cooperation in new projects in Asia Pacific;

and (iii) commercial sponsorship and support to GDF SUEZ in Asia Pacific region, including China, by CIC’s affiliates.

The MoU will be administered through a Steering Committee chaired by the two groups’ respective CEOs.

As the first milestone of this cooperation, CIC is in advanced exclusive talks with GDF SUEZ regarding a €2.3 billion minority investment in the Exploration & Production division of GDF SUEZ (“GDF SUEZ E&P”) (excluding the 22.5% equity stake in E.F. Oil and Gas Limited (“EFOG”)). CIC will own 30% of GDF SUEZ E&P, following a capital increase and a financial restructuring of GDF SUEZ E&P reducing its net financial debt to €0.7 billion.

The minority investment of CIC will reinforce GDF SUEZ E&P’s capital structure and will contribute to accelerate the development of this important activity for GDF SUEZ by providing the appropriate financial flexibility. Initiated in the 1990s via acquisitions followed by strong organic development, GDF SUEZ E&P has 2P reserves of 815 mmboe at the end of 2010, an annual production of 51 mmboe in 2010 and a significant portfolio of contingent resources and exploration prospects. With more than 1,500 employees in 13 countries, it generated €2.2 billion of revenues and €1.4 billion of EBITDA in 2010. The transaction values GDF SUEZ E&P (excluding EFOG) at c. €8.1 billion in enterprise value.

As part of the transaction, CIC would also acquire from GDF SUEZ a 10% stake in the train 1 of the Atlantic LNG liquefaction plant located in Trinidad and Tobago as well as production payments associated with trains 2, 3 and 4 for an amount of €0.6 billion.

The potential acquisition by CIC of a 30% stake in GDF SUEZ E&P and of its 10% stake in the LNG Atlantic liquefaction plant is part of GDF SUEZ’s portfolio optimization program of €10 billion, announced at the 2010 annual results presentation and would result in net cash proceeds of €2.9 billion. The transaction will be subject to condition precedents being satisfied and will be presented for consultation to GDF SUEZ’s employee representative bodies. The transaction could be finalized by the end of 2011. The GDF SUEZ Board of Directors views the cooperation with CIC and the transaction as having a strong strategic interest for GDF SUEZ.”

Read more: GDF SUEZ Press Release

The China Investment Corporation has a history of investing in energy companies and energy-related investment projects, especially in the Americas. A few notable deals include: AES Corp, Penn West Energy Trust, and the Chesapeake Energy Corporation. GDF Suez SA is a French firm that is involved with liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF Suez SA is near closing a deal with the China Investment Corporation. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Nicky Oppenheimer

Temasek Holdings and E. Oppenheimer & Son International Ltd, a family investment vehicle of the Oppenheimer family, are forming a joint venture called Tana Africa Capital. Tana Africa Capital (50/50 joint venture) will invest in private and public companies in consumer goods sector in South Africa as well as natural resources. This is not Temasek’s first investment incursion into South Africa. It made a substantial investment in Platmin, a South African platinum developer.

E. Oppenheimer & Son International Ltd owns a sizable equity stake in De Beers as well as other commercial interests.

South Africa has struggled gaining significant direct investments due to threats of nationalizations of natural resources.

Maple Group Acquisition Corporation is comprised of thirteen Canadian financial institutions and pension funds. The collection of investors has extended their offer to acquire a minimum of 70% and a maximum of 80% of TMX Group shares in concert of an integrated deal. The total valued transaction at 100% shares is $3.8 billion. The offer is being extended till September 30, 2011. Maple Group Acquisition Corporation is confident it will pass Canadian regulatory hurdles.

If the deal goes through, Maple Group Acquisition Corporation wants to maintain the exchange’s presence in Canada and create operational efficiencies through technology.

Maple Group is the last man standing in terms of buying out TMX, as the London Stock Exchange did not garner enough TMX shareholder approval.  TMX Group has performed well recently. In the first calendar quarter of 2011, it had a profit margin of 36.2% based in USD. NYSE Euronext’s profit margin in the same time period was 14.07%.

• About Maple Group Acquisition Corporation
• Alberta Investment Management Corporation
• Caisse de dépôt et placement du Québec
• Canada Pension Plan Investment Board
• CIBC World Markets Inc.
• Desjardins Financial Group
• Dundee Capital Markets Inc.
• Fonds de solidarité des travailleurs du Québec (F.T.Q.)
• GMP Capital Inc.
• National Bank Financial Inc.
• Ontario Teachers’ Pension Plan
• Scotia Capital Inc.
• TD Securities Inc.
• The Manufacturers Life Insurance Company

According to the press release, “Hamilton Sundstrand Corporation and Mubadala Aerospace have finalized a wide-ranging strategic agreement under which Mubadala Aerospace will be a key part of the support network for servicing Hamilton Sundstrand products and systems on the Boeing 787. The deal, a first for Hamilton Sundstrand, includes a licensing agreement for Mubadala Aerospace to provide maintenance, repair and overhaul (MRO), through Mubadala-owned companies Abu Dhabi Aircraft Technologies (ADAT), SR Technics and Sanad Aero Solutions (Sanad), based on Hamilton Sundstrand’s technical expertise. The agreement gives 787 operators an additional choice for their maintenance needs for Hamilton Sundstrand products and systems, which make up a majority of the systems on Boeing’s new 787 Dreamliner.

Mubadala Aerospace is a business unit of Mubadala Development Company, the strategic investment arm of the Abu Dhabi government. Hamilton Sundstrand is a subsidiary of United Technologies Corp. (NYSE: UTX).

Under the license agreement, ADAT and SR Technics will provide integrated component solutions (ICS) to Boeing 787 airline customers, while Sanad will provide financing of rotable components, all with the technical support of Hamilton Sundstrand. Mubadala Aerospace is developing a global network covering the entire MRO value chain, including engine, component and airframe capabilities, in addition to spare engine and rotable leasing through Sanad.

“Hamilton Sundstrand is pleased to establish this key relationship with Mubadala Aerospace to equip Mubadala MRO companies with the required resources to service Hamilton Sundstrand systems and particularly components for the Boeing 787,” said Matthew Bromberg, vice president and general manager, Hamilton Sundstrand Customer Service. “This arrangement will allow Hamilton Sundstrand to extend its reach of OEM world-class service by building on Mubadala Aerospace’s capabilities in both the Europe and the Middle East. The Boeing 787 has a diverse customer base and demands diverse maintenance solutions.”

Homaid Al Shemmari, executive director of Mubadala Aerospace, said, “We are delighted to sign this strategic agreement with Hamilton Sundstrand, which brings essential component capability to ADAT and SR Technics for the Boeing 787 and financing opportunities for Sanad. Hamilton Sundstrand is one of the largest players in the aerospace components industry, and shares our global ambitions. Importantly, this expands our relationship with UTC and complements our existing partnership with Sikorsky in AMMROC. We are excited about the overall opportunities this relationship brings to both parties.”"

Read more: Hamilton Sunstrand Press Release

The table below displays the top ten SWF Direct Deal Transactions of 2010, excluding the SWFTD’s open market transactions. The direct transaction amounts are smaller compared to the bailout years of 2007 and 2008. The IPO of the Agricultural Bank of China has made a notable impact on the list.

Source: Sovereign Wealth Fund Transaction Database – Deals Only (No open markets)

Buy a License of the Sovereign Wealth Fund Transaction Database today.

The IDFC press release states, “IDFC and Khazanah have agreed to enter into a joint venture (JV) to set up a dedicated infrastructure development company with a focus on road sector in India. Khazanah would hold 80.1 % of the equity share capital in the proposed JV and the balance would be held by IDFC. Khazanah and IDFC also propose to invest in convertible instruments issued by the JV.

The first investment of this JV will be in Jetpur Somnath Tollways Limited (JSTL), subject to receipt of necessary regulatory approvals and permissions, including those from the National Highway Authority of India. JSTL undertakes development of a project involving four-laning the Jetpur-Somnath section of the National Highway-8D in the State of Gujarat. 74% of the share capital of JSTL is currently held by IDFC Projects Limited (IDFCPL). The JV will initially acquire 48% of the share capital of JSTL from IDFCPL and will ultimately acquire the entire shareholding of IDFCPL in JSTL and hold 74% of the share capital of JSTL.”

Source: Infrastructure Development Finance Co Press Release

Owned by the Province of Alberta, the Alberta Investment Management Corporation (AIMCo) manages investments for the Alberta Heritage Fund, public pensions, and other governmental funds.  They have been an active investor in several prolific direct investing strategies.  In the next twelve months, the crown corporation could spend as much as C$700 million (US$ 720 million) in private equity type purchases.  These would mostly likely be mid-market type transactions.  AIMCo has spent a tremendous amount of internal resources and time beefing up their private equity / direct investment team.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Georgia is a country with ripe agricultural land and located strategically by the Black Sea. The country’s soil and climate has made farming a very productive sector for the overall domestic economy. Crops such as corn, wheat, hazelnuts, citrus fruits, and grapes are dominant. Hassad Food, the sovereign wealth enterprise of the Qatar Investment Authority is on the lookout for agricultural investments. They recently made a visit to meet with the Finance Minister of Georgia. In addition, they also discussed about Qatari Diar’s possible investment in developing hotel properties in the country.

It might be a strategically convincing idea to partner with Qatar, as Georgia imports nearly all its required materials for gas and oil products.

May 2011 Update: We have Financial Advisor League Tables available for the following Sovereign Wealth Funds:

• Financial Advisor League Tables – China Investment Corporation
• Financial Advisor League Tables – Korea Investment Corporation
• Financial Advisor League Tables – GIC
• Financial Advisor League Tables – IPIC
• Financial Advisor League Tables –Mubadala
• Financial Advisor League Tables – Qatar Investment Authority
• Financial Advisor League Tables –Temasek Holdings

The press release states, “Aabar Investments PJS (“Aabar”) today confirmed an investment of $850 million in Glencore International plc (“Glencore”) as a cornerstone investor with an intention to invest an additional $150 million in the Global Offer. Glencore is one of the world’s leading integrated producers and marketers of commodities. This investment makes Aabar the largest cornerstone investor in the IPO.

His Excellency Khadem Al Qubaisi, Chairman of Aabar: “We are pleased to count ourselves as the largest new shareholder of Glencore post its IPO. Glencore is known for its achievements and value creation in the resources space and we are excited about the potential opportunities between Abu Dhabi and Glencore given Abu Dhabi’s leadership in petrochemicals and hydrocarbons domestically and around the world. The investment is consistent with our policy of investments and strategic partnerships with global market leading businesses and, we are looking forward to a successful partnership with the company”.

The $850 million investment represents the foundation of Aabar’s commitment as the largest cornerstone shareholder in Glencore and the sovereign wealth fund intends to acquire additional shares in the Global Offer to bring its initial investment up to $1 billion in the short term.

“Given Aabar’s focus on value enhancing investments and the great opportunity that global commodities offer we intend to explore in due course areas of co-operation between the two firms. This is an important milestone in Aabar’s development strategy and we are proud to lead this effort.” adds Mohamed AlHusseiny, CEO of Aabar.”

Read more: Aabar Investments Press Release

Asian sovereign funds have been active in investing in Latin American natural resources. The Korea Investment Corporation, Canada’s Ontario Teachers’ Pension Plan (OTPP), and another investor are planning to invest in Manabi Holding SA. Manabi Holding SA is a Brazilian special purpose company that manages steel assets and iron ore exploration.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Sovereign wealth funds are no strangers to European football clubs. Football clubs present an attractive investment opportunity for strategic sovereign funds as it gives them exposure to the advertising and entertainment sectors. The Libyan Investment Authority used to own a part of the Juventus club. In June 2009, Colony Capital bought out Morgan Stanley’s interest in the French football team, Paris Saint-Germain (PSG). Colony Capital is now looking to sell its holding in Paris Saint-Germain. They are looking to sell their 95.8% stake in the club.

One potential suitor is the Qatar Investment Authority. It is rumored that the proposed deal figure is around €50 million. Not to also mention, the Emirates Group is an official partner of PSG and has renewed their team sponsorship until the 2013-2014 season.

Qatar will be hosting the 2022 FIFA World Cup. Qatar is the first Arab nation to host a World Cup.

China’s National Council for Social Security Fund is planning to invest $1.5 billion in the China Development Bank. The money will be used to help strengthen the capital base of the bank. The fund can hold up to a 2.19% stake in the bank. The National Council for Social Security Fund has also invested in other major Chinese state banks such as the Industrial and Commercial Bank of China, Bank of China, and the Bank of Communications.

On March 23, 2011, Qatar Holding, the sovereign wealth enterprise of the Qatar Investment Authority, exceeded the investment threshold of 10%. Qatar Holding has invested a large sum of money into HOCHTIEF AG, one of Germany’s largest builder companies. The sovereign wealth enterprise intends to have representation on the supervisory board of the firm.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Frac Tech Holdings LLC is a Texas based provider of oil and natural gas well stimulation services. They have expertise in high-pressure hydraulic fracturing. The company has operations across the United States. Temasek Holdings is on a campaign to booster its energy industry portfolio. Maju Investments formed a consortium to purchase a 70% stake in Frac Tech Holdings LLC with RRJ Capital.  [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to the press release, “Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI; SEHK: 0981.HK), China’s largest and most advanced semiconductor foundry, announced today a definitive investment agreement between SMIC and China Investment Corporation (CIC). Under the terms of the agreement, CIC will invest US$250 million in SMIC, acquiring 360,589,053 convertible preferred shares at HK$5.39 per convertible preferred share. After issuance and conversion of the new shares, CIC will own approximately 11.6% of SMIC’s outstanding share capital. The agreement also provides CIC with warrants for investing an additional US$50 million in SMIC on the same terms, and entitles CIC to nominate one member of SMIC’s board of directors.

“We are very pleased with our new partnership with CIC,” said Dr. Jiang Shangzhou, Chairman of SMIC. “Their investment in SMIC provides a source of capital that allows us to take full advantage of our project pipeline. Partnering with CIC is conducive to realizing our development objectives and enhancing our competitive advantage in the international arena. We welcome this investment from CIC.”"

Read more: SMIC Press Release

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Sovereign wealth funds are at it again, investing directly into another private equity management firm.  [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to the press release, “Qatar Holding LLC and IBERDROLA, S.A. are pleased to announce today that they have signed a Strategic Memorandum of Understanding setting forth the framework for collaboration in developing their respective business activities through the establishment of a long-term, mutually beneficial, strategic partnership.

The two parties will cooperate for the purpose of developing new business opportunities in different areas of the global electricity value chain with a focus on high-growth and emerging markets. IBERDROLA also intends to establish its regional Headquarters as well as research and development operations in the State of Qatar.

Additionally, Qatar Holding through its wholly-owned subsidiary has fully subscribed to the 6.17% capital increase approved by the Board of Directors of IBERDROLA for a total investment amount of €1,906 million. The issue price is €5.633 per IBERDROLA share. Further, Qatar Holding through its wholly-owned subsidiary has agreed to acquire treasury shares representing 0.37% of the share capital of IBERDROLA pre-increase, at the same price per share for a total purchase amount of €115 million. Consequently, Qatar Holding through its subsidiary will hold 6.16% of the share capital of IBERDROLA outstanding after the capital increase. The cash inflow from the capital increase will allow IBERDROLA to strengthen its financial position and pursue corporate transactions such as its proposed merger with IBERDROLA RENOVABLES, S.A., the acquisition of Elektro Electricidade e Servicios, S.A. in Brazil, and other growth opportunities.”

Read more: Iberdrola Press Release

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The press release states, “the Abu Dhabi sovereign wealth fund, International Petroleum Investment Company (IPIC), which currently owns 47.06% of CEPSA’s share capital, has announced today, through a significant event filed with the Spanish Securities Market Commission (CNMV), that it will launch a public takeover bid on the entire share capital of CEPSA. The offer price will be €28 per share, which assumes a €0.50 dividend that CEPSA will pay out prior to the settlement of the takeover bid (otherwise, the price would be adjusted so that the amount received by shareholders who accept the offer, adding up the price plus the dividend, would be €28.50 per share).

• TOTAL has undertaken to tender all of the shares it owns in CEPSA in this offer, representing 48.83% of the share capital
• The offer price has been set at €28 per share, plus a dividend of €0.50 which will be paid out to shareholders before the settlement of the bid
• The transaction is conditional on obtaining all the required approvals and clearances from the Spanish Securities Market Commission (CNMV) and the competition authorities

As a result, the total deal would be valued at approximately €3,970 million if the offer were to be accepted by all shareholders. TOTAL has irrevocably undertaken to tender all of the shares it owns in this offer, equivalent to 48.83% of CEPSA’s share capital. These shares are held by TOTAL through its subsidiary Odival. The takeover bid, apart from requiring authorization from the Spanish Securities Market Commission, CNMV, must also obtain the necessary approvals and clearances from the competition authorities.”

Read more: CEPSA Press Release