Home delivery boom kicks off property scramble 2 Oct 2017 Singapore-listed Global Logistic Properties is buying warehouse owner Gazeley for $2.8 bln. It’s the third big European logistics deal this year as a boom in e-commerce revives the once-sleepy sector. Sovereign wealth and pension funds will increasingly follow consumers’ money.
Mitsui Sumitomo makes pricey advance in Asia 24 Aug 2017 The Japanese group has swooped on Singapore’s biggest property and casualty insurer for $1.6 bln in cash. That equates to an expensive-looking 3.3 times book value. Still, the deal will consolidate the buyer’s already strong presence in fast-growing Southeast Asia.
Unilever can butter up price for margarine unit 18 Aug 2017 Private equity consortiums are reported to be circling the Anglo-Dutch giant’s spreads business. A bidding war and the rich price paid for Reckitt’s food brands may help Unilever pocket more money. But unappetising returns await any buyer who pays more than 7 billion pounds.
Grab rides two trends to $6 bln valuation 24 Jul 2017 The taxi app is raising $2.5 bln in Southeast Asia’s biggest fundraising. It helps that Japan’s SoftBank is investing in unicorns everywhere and that Didi, like China's other tech giants, is chasing growth nearby. The funds will make it harder for Uber to conquer the region.
Hong Kong gaming IPO is not Razer sharp 13 Jul 2017 The U.S.-Singaporean firm, which makes gaming keyboards and mice, is eyeing a valuation of up to $5 bln. But Razer is loss-making and expanding into areas like laptops, mobile devices and its own virtual currency. The financial reality of these businesses is underwhelming.
Temasek’s garage sale highlights capital dilemma 12 Jul 2017 The Singapore state investor sold more assets than it bought for the first time since 2009. The trend may continue with valuations high and stiff competition for assets from cash-rich private equity players. It will also make it hard to redeploy capital efficiently.
GIC’s shrinking returns add to Singapore’s gloom 10 Jul 2017 The state fund delivered one of its worst performances since 2001. With geopolitical risks on the rise, the outlook is depressing too. Singapore's challenges investing overseas compound the mood at home as the city's first family feud in an ugly public squabble.
Alibaba readies for showdown in Southeast Asia 29 Jun 2017 The Chinese giant spent another $1 bln to tighten its grip on regional arm Lazada. The extra control could be useful as Alibaba confronts local upstarts, domestic peer JD, and possibly Amazon in the future. All will face formidable challenges, from logistics to payments.
Sale of Singapore’s GLP seems to stack up 23 Jun 2017 Buyout firms are boycotting an auction they think favours insiders, the FT says. That is embarrassing for the $10 bln warehouse giant and top backer GIC. But GLP appears to be playing it straight. Securing a full price for shareholders would draw a line under the matter.
Banks hold key to Noble Group’s future 7 Jun 2017 The ailing trader wants to extend a $2 bln credit line, under which it has borrowed $620 mln in cash. It has the ability to repay the cash if needed. But losing the whole facility would hurt. Noble has to play for time if it is to avoid the restructuring that investors fear.
Market forces fail working women in Asian hubs 25 May 2017 Hong Kong and Singapore are depressing places for women aspiring to boardroom roles. There has been glacial progress in promoting the gender, despite the proven business benefits and an ample talent pool in both cities. Authorities should embrace quotas to fix the imbalance.
Singapore Airlines and Cathay fight same headwinds 19 May 2017 Singapore's disappointing results echo troubles at its Hong Kong rival. Chinese competition is hitting both. Neither has a big domestic customer base and their traditional hub role is under threat. At least the Singaporeans have a smarter-looking approach to budget travel.
Western banks are a poor home for Asian billions 16 May 2017 If sovereign funds are meant to generate superior returns over generations, the sale of UBS shares by Singapore’s GIC is logical. Banks’ futures are clouded by technology, disintermediation and populism. Those still building stakes, like China’s HNA, may have other goals in mind.
GIC’s humbling retreat from UBS makes sense 16 May 2017 The Singaporean wealth fund is losing money by selling a chunk of the bank it helped rescue nearly a decade ago. Even long-term investors have limits to their patience. A bounce in global financial stocks could tempt others such as Temasek to sift the wheat from the chaff.
Noble Group founder bows out on a low 11 May 2017 Chairman Richard Elman is stepping down as the embattled commodity trader confirmed a quarterly net loss of $130 mln. An earlier profit warning had already slashed 32 pct from its shares. Despite a rights issue and a slew of other initiatives, investor confidence is shot to bits.
Sinochem pounce on revamped Noble Group is timely 14 Feb 2017 The Chinese conglomerate is reportedly looking to buy into the Singapore-listed trader. Joining a capital hike last summer would have been cheaper. With much of Noble’s restructuring done and commodities prices rising there could still be upside for Sinochem, if it moves fast.
Singapore banks running out of profit defences 14 Feb 2017 Singaporean lender OCBC posted disappointing results due to higher bad debt charges, driven up by delinquencies in the energy sector. Banks in the city-state have propped up profits by running down bad debt provisions, but that leaves them increasingly vulnerable.
Blue-chip exodus is awkward for Singapore 10 Feb 2017 The $9 bln Global Logistic Properties could join a flurry of companies going private in the Lion City. Low valuations and poor liquidity are a problem. If even Singapore's state-backed giants are falling out of love with the exchange, luring bumper IPOs seems fantastical.
Singapore stresses under a wealth of worries 6 Dec 2016 Morale is lousy in the city-state. The trade-reliant nation is heading for a recession and China is flexing its muscles. Singapore's strategic direction and its outsize influence on the global stage are both in question. There are no easy fixes to restore the Lion City's roar.
Rally in Singaporean bank shares has overshot 29 Nov 2016 DBS, OCBC and UOB have joined a global sector upturn on hopes that rising interest rates and a steeper yield curve will boost profits. By historical standards, the city's banks still look cheap. But the lenders are badly exposed as bad debt risks rise across the region.