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Pavilion Energy Acquires Stake in Tanzania Blocks from Ophir Energy

Temasek Holdings, through its wholly-owned portfolio company Pavilion Energy, has announced an agreement to purchase a 20% stake in Tanzania Blocks 1, 3 and 4 from Ophir Energy plc. Ophir is a constituent of the FTSE 250 Index.

According to a statement issued by Pavilion Energy, the entity will pay $US 1.3 billion for the stake. Estimates put the amount of liquefied natural gas (LNG) at 15 trillion cubic feet.
Ophir is listed on the London Stock Exchange, and share prices gained nearly 17% after the deal was announced. The deal is still subject to regulatory approval and Ophir shareholder approval, but is expected to be completed in the first quarter of 2014; first delivery is expected in 2020.

With regard to the agreement Pavilion Group CEO Seah Moon Ming said, “This investment in Tanzania Blocks 1, 3 and 4 is a key milestone for Pavilion Energy to build up our LNG portfolio. It supports our plan to secure long-term energy supply at competitive prices to meet the need for clean energy in Asia.”

Pavilion Energy seeks to be the center of LNG assets in the Asian region. The fields are currently owned 60/40 between BG Group plc and Ophir, respectively, with BG Group being designated as the operator of the project. BG Group and Ophir are both headquartered in the United Kingdom.

Pavilion Energy has committed capital of US$ 6.9 billion up from the US$ 1 billion that was allocated to the company in September.

Asian Sovereign Funds Not Slowing Down on Tech Investing

According to data from SWFI’s Sovereign Wealth Fund Transaction Database, Asian sovereign funds invested US$ 6.05 billion directly into companies and assets in the information technology sector from Jan 2017 to November 22, 2017. In a comparable time frame from Jan 2016 to November 22, 2016, this same group of Asian sovereign funds directly invested US$ 5.02 billion in the sector. These are direct investments, not fund commitments or manager allocations.

Asian sovereign funds such as GIC Private Limited, Temasek Holdings and the Korea Investment Corporation (KIC) have demonstrated bullish signals to the technology community over other sectors. GIC and Temasek have also been major investors in the private side of deals, funding a wide range of tech startups, while providing financial firepower in buyout transactions.

Some notable direct tech investments in 2017 by sovereign funds include Meituan-Dianping, SoundCloud, Nets A/S, Visma AS, Turn, Inc. and Vantiv.

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Future Fund Makes a Guardian Out of Former J.P. Morgan ANZ Chair

The Australian government has appointed Robert Priestley – current non-executive chair of J.P Morgan for Australia and New Zealand (ANZ) and a non-executive director of ASX – to serve on the Future Fund Board of Guardians for a five-year term from November 7, 2017. Priestley replaces former Morgan Stanley Australia chief executive Steven J. Harker.

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Associated British Ports Reboots Property Development Arm to Capitalize on Land Bank

Associated British Ports (ABP) – operator of 21 major ports throughout the United Kingdom – has announced a reboot of its ABP Property division, complete with a new team of specialists in commercial development and logistics led by Huw Turner, in order to identify and develop strategically significant locations in its 2,372 acre land bank.

ABP is owned in large part by a consortium of pensions and sovereign funds, including the Canada Pension Plan Investment Board (CPPIB) at 33.88% ownership, OMERS at 30%, Singapore’s GIC Ventures Pte Ltd at 20.00% ownership, and the Kuwait Investment Authority at 10.00% ownership. Large institutional investors such as sovereign funds, pensions, and endowments have slowly increased allocation towards infrastructure over the past six years as an alternative to equities and bonds, according to asset allocation data from SWFI.

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