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Bank of China and Temasek Sign Strategic Investment Agreement



According to the press release, “Bank of China Limited (“Bank of China”) and Temasek Holdings (Private) Limited (“Temasek”) jointly announced today that, following negotiations and discussions by the two entities, Temasek will, through its wholly-owned subsidiary Asia Financial Holdings (‘AFH’), acquire a 10% interest in Bank of China for US$3.1 billion. Temasek has also undertaken to subscribe for an additional US$500 million worth of shares during Bank of China’s initial public offering. This transaction is pending government and other relevant regulatory approvals.

With this agreement, Bank of China has introduced another strategic investor following the signing of the strategic investment agreement with Royal Bank of Scotland on August 18, 2005.

Subject to mutual agreement, Temasek will assist Bank of China in improving corporate governance, including the right to nominate suitable candidates for election to Bank of China’s board of directors. Other areas of collaboration and support are under discussions.

In addition to a strong focus on corporate governance, Temasek will facilitate linkages to other players in the Asian financial sector to support the development of Bank of China’s talent pool and technology base. As major financial institutions in Asia, both entities also agreed to strengthen their cooperation and contribute to the financial sector modernization in Asia.

Bank of China said,”Temasek is a major investor in Asia, with a strong reputation and matured operating mechanism in the area of corporate governance. Bank of China is a banking group with nearly a hundred years of history, and has established a prudent business style and a broad customer network. The cooperation of these two strong financial institutions with complementary strengths will result in enhanced competitiveness. The strategic investment by Temasek will support the deepening of the overall reform for Bank of China. The transaction will help Bank of China further strengthen its capital base, improve its shareholder structure and enhance its corporate governance.”

Temasek said, “We are delighted that an agreement has been reached with Bank of China. This is our largest direct investment in China, and is also a long term investment for us. It underlines our confidence in the long-term growth of China’s economy. More importantly, this investment represents our belief that Bank of China has transformed itself into a strong financial institution with extensive networks in China and overseas. We share the bank’s belief in its tremendous potential and are privileged to be an investor.””

Read more: Press Release

DP World and NIIF Joint Venture Embarks on First Investment



Hindustan Infralog Private Limited, the US$ 3 billion joint venture formed in January 2018 between DP World and the National Investment and Infrastructure Fund (NIIF) to invest in ports, logistics and warehousing, agreed to acquire 90% of Continental Warehousing Corporation (Nhava Seva) Limited for US$ 400 million. 10% is being retained by the company’s founders – the Reddy family. Adi Keshav Reddy is the founder of Continental Warehousing. This is the first investment of the Hindustan Infralog platform.

The sellers include Warburg Pincus India Pvt Ltd, International Finance Corporation (IFC) and Aureos Capital, a joint venture between the CDC and Norfund that was acquired by Abraaj Capital.

Barclays, Citi and Detusche Bank advised on the transaction.

Continental Warehousing was formed in 1997 and is one of India’s biggest container warehousing firms – operating container freight stations and private freight terminals across India. In April 2011, Warburg Pincus invested in Continental Warehousing, committing US$ 100 million. In December 2015, IFC invested US$ 25 million in equity and lent US$ 35 million in debt to Continental Warehousing.

In India, DP World has been operating container port terminals since 1997.

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SWFI First Read, March 18, 2018



Surbana Jurong and China Vanke Tie up Deal for Industrial Town Projects

Surbana Jurong, a real estate development company focused on urban projects, inked a deal with China Vanke to partner on new industrial towns in China’s midwest regions. Surbana Jurong is majority-owned by Singapore’s Temasek Holdings. The first joint project is Vanke’s Jianzhou Dream Town in Chengdu. Surbana will provide the design for this project.

PIF Eyes Hollywood Talent

Saudi Arabia’s Public Investment Fund (PIF) is looking at investing around a 7% stake in Endeavor, LLC, a talent agency holding entity of WME for a reported US$ 400 million. Ari Emanuel is the CEO of Endeavor. PIF’s financial advisor for this deal is Michael Klein & Co. Endeavor is being advised by Ares Holdings.

Alex Wilmot-Sitwell of BAML Resigns

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Mubadala Invests in No Fly Zone Drone Radar Company



Data Collective led a US$ 15 million Series A round into Salt Lake City-based Fortem Technologies, Inc., a company that works on solutions that can detect, identify and classify drones in real time to maintain airspace safety. Other investors in the round include Boeing, Mubadala Investment Company, Manifest Growth, New Ground Ventures and Signia Venture Partners.

Ibrahim Ajami, Head of Mubadala Ventures said in the press release, ” Mubadala is excited to work with Fortem and its outstanding leadership team to help grow its business to new markets.”

Ajami added, “We strongly believe the TrueView radar is essential to maintain a safe airspace for both the aircraft and the critical infrastructure on the ground.”

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