Olam should show, not tell in Muddy Waters fight 28 Nov 2012 The commodities trader has rejected the short-seller’s belief that it’s heading for an Enron-style collapse. But claims of solvency may not be enough. To convince creditors, the company could follow the example set by U.S. broker Jefferies and liquidate some of its assets.
Short-seller raises stakes with Singaporean attack 20 Nov 2012 Shares in Olam have been suspended after Muddy Waters founder Carson Block questioned its accounts. His record of exposing Chinese frauds will make investors take notice. But the commodity trader, and largest shareholder Temasek, are bigger game. Both sides have much to lose.
Europe, China holding back Asian export recovery 31 Oct 2012 Gains in September exports have buoyed hopes for a U.S.-led rebound in regional trade. But Asian economies have shifted their focus to Europe and responded to Chinese competition by supplying the manufacturing juggernaut. A U.S. upturn alone won’t revive Asia’s export engine.
Temasek telco trade offers few clues for StanChart 26 Sep 2012 The Singaporean fund sold a $1.1 billion block of shares in landmark holding SingTel. The latest reshuffle raises further expectations that its 18 percent stake in the UK bank will be next. Though both have delivered good returns, offloading StanChart shares will be harder.
Tiger beer sale lobs Thai ball into F&N’s court 19 Sep 2012 Bangkok moguls have blessed Heineken’s bid for Asia Pacific Breweries, clearing the way for a large cash payout to 40 pct shareholder Fraser & Neave. But the Thais still want to buy the rest of the Singaporean conglomerate. Its board needs to convince investors to hold out.
Thais hope for third time lucky with $10bn F&N bid 13 Sep 2012 The Bangkok beer moguls twice failed to get their hands on Asia Pacific Breweries, but prodded Heineken into a higher bid. Now they’re offering to buy the 70 pct of parent company Fraser & Neave they don’t own. At S$8.88 per share, every extra share they get looks a bargain.
Thais belly up for bigger gulp of Heineken’s cash 29 Aug 2012 Thai Beverage has raised its stake in Singapore’s Fraser & Neave close to 30 percent. Its billionaire founder may be trying to block Heineken’s $10.9 billion offer for Asia Pacific Breweries. But it’s more likely he’s just angling for a larger share of the Dutch brewer’s payout.
Thais have done well in APB bluff against Heineken 20 Aug 2012 The Dutch brewer blinked after a Bangkok beer family threatened to block it from full ownership of the Singapore brewery. Heineken raised its bid to $4.46 bln. The Thais could try for still more, but risk a devastating loss if Heineken balks. They’d be savvy to cash in now.
Heineken should call Thai bluff for Tiger beer 8 Aug 2012 A Thai mogul has pipped the Dutch brewer’s S$50 a share bid for Asia Pacific Breweries with a higher offer, but only for a minority stake. Heineken shouldn’t bite. It loses little even if its bid fails. It may just end up with a debt-laden partner it can buy out cheaply later.
Heineken’s $6 bln deal should trigger aftershocks 3 Aug 2012 The Dutch brewer is paying a hefty 17 times EBITDA to take control of Asia Pacific Breweries from partner F&N. Heineken had little choice, as it couldn’t let APB slip through its fingers. This sets up F&N’s next act - the dismemberment of the rest of the conglomerate.
Asian conglomerate owners owe Heineken a toast 25 Jul 2012 The Dutch brewer’s $6bn bid for its beer venture with Fraser and Neave should prompt the Singapore drinks and property group’s independent directors to consider a full-blown breakup. Even after the recent rally in its shares, the pieces are worth some 20 pct more than the whole.
Don’t rule out a future SGX bid for LSE 23 Jul 2012 Singapore’s bourse denies holding deal talks with the London Stock Exchange. That’s no surprise: most recent stock-exchange M&A has failed, and the LSE is mid-way through an important move into clearing. Still, an eventual $5.7 bln offer could make financial and strategic sense.
Anil Ambani under pressure after IPO flop 23 Jul 2012 Reliance Communications’ shelving of a $1 bln listing for its undersea cable assets is an embarrassing setback for its majority owner. And it heaps even further pressure on the badly indebted Indian telco. With Anil’s brother sitting on a cash pile, is it time to phone a friend?
Heineken tries to take the Asian Tiger by the toe 20 Jul 2012 The Dutch brewer launched a $6 bln bid to take control of Asia Pacific Breweries, its longtime Asian partner and Tiger brand owner, pitting it against a thirsty Thai beer mogul and Kirin. It’s a bold move for conservative Heineken that will test Singapore’s corporate governance.
Thai Bev dons beer goggles for taste of Tiger 19 Jul 2012 Thai Beverage has spooked Heineken by paying $3 bln for a piece of the Dutch brewer’s Singaporean partner. It is paying a hefty premium and racking up big debts for less than a fifth of the target. It needs more to make the finances stack up. That will be a tall order.
Heineken can’t let Asia Pacific Breweries get away 18 Jul 2012 A Bangkok beer mogul has upset the equilibrium in a JV that’s been key to the Dutch brewer’s Asian footprint since 1931. Thai Bev is jockeying to take control of Fraser and Neave from Singaporean bank OCBC. Heineken may need to dig deep to ensure its position in the region.
Trafigura move tests Singapore’s fat-cat fatigue 24 May 2012 The commodities trader is moving its HQ to Singapore, where its CFO joins Facebook founder Eduardo Saverin and a stream of bankers. Low taxes and proximity to growing Asian markets explain the appeal. But a warm welcome may depend on new arrivals’ ability to create local jobs.
Temasek makes unlikely corporate governance hero 18 May 2012 The Singaporean fund abstained from backing several Standard Chartered directors, apparently because the UK lender’s board had become less independent. Temasek would gain much by speaking out on such topics - even if it sits uneasily with its growing investments in Chinese banks.
Temasek’s triple personality bodes well for returns 9 May 2012 The Singaporean state investor is developing the trading eye of a hedge fund, a private equity taste for financial engineering, and the pay structure of an investment bank. That should improve its sub-par performance, though it won’t always sit well with Temasek’s political ties.
DBS deal tests Indonesia’s deep Singapore-phobia 24 Apr 2012 Even a 52 percent premium may not secure the Singaporean bank’s $7.2 bln takeover of Bank Danamon. A deal would benefit all sides and burnish Indonesia’s image as a hot investment destination to boot. But looming elections and longstanding mistrust may trump commercial logic.