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Qatar fund to buy stake in HK department store operator for $616 mln

Posted on 20 October 2014 by VRS  |  Email |Print

Qatar Holding LLC has agreed to pay $616 million for about one fifth of Lifestyle International Holdings, a department operator in Hong Kong and mainland China - the latest addition of a high-end retail brand to the sovereign wealth fund’s portfolio.
Lifestyle’s stores include a SOGO branded store in Hong Kong’s bustling shopping district of Causeway Bay and four Jiuguang stores on the mainland. A unit of Qatar Holding will pay HK$14.75 per share for the 19.9 percent stake, a 1 percent premium to Lifestyle’s last traded price of HK$14.60, the statement added. Qatar Holding will get one board seat on the completion of the transaction………………………………………..Full Article: Source

Qatar eyes $15bn Greater China spending spree

Posted on 20 October 2014 by VRS  |  Email |Print

Qatar’s purchase of a stake in a Hong Kong department store chain is the beginning of a potential $15bn spending spree targeting Greater China, according to people familiar with the Gulf state’s plans. Qatar Holding, which owns stakes in Harrods, Barclays, Credit Suisse and Canary Wharf Group among others, on Monday said it would pay $616m for a near-20 per cent stake in Lifestyle International Holdings, owner of Hong Kong’s SOGO department stores.
The fund’s parent, Qatar Investment Authority, aims to spend up to $15bn in the medium term to bolster its presence in north Asia, according to people familiar with the matter………………………………………..Full Article: Source

TIH wraps up S$129m in acquisitions from Temasek Holdings

Posted on 20 October 2014 by VRS  |  Email |Print

Private equity fund TIH Limited’s subsidiary TIHT Investment Holdings has completed a S$129 million acquisition of assets from Temasek Holdings. This comprises a minority interest in CEI Contract Manufacturing Limited and the assignment of beneficial ownership in a minority interest of Mitsui Life Insurance Company Limited.
The consideration of S$129 million is payable partly in cash, partly by way of financing and an issue of shares in TIHT. Post-completion, TIHT will be 55 per cent owned by Killian Court, a direct wholly-owned subsidiary of TIH and 45 per cent owned through an indirect wholly-owned subsidiary of Temasek………………………………………..Full Article: Source

Citycon acquires GIC’s ownership stake in the Iso Omena shopping centre

Posted on 17 October 2014 by VRS  |  Email |Print

Citycon has today agreed to acquire GIC’s 40 per cent stake in the Iso Omena shopping centre in the Helsinki region. After this transaction, Citycon owns 100 per cent of the existing shopping centre. The purchase price is in line with the current fair value of Iso Omena. GIC has been a co-investor in Iso Omena since 2008. During this period, Iso Omena has shown strong performance with net rental income increasing by approximately 30 per cent, and footfall and sales by approximately 17 per cent.
“We have been very pleased with the joint venture with GIC and want to thank them for their commitment in making Iso Omena one of the best shopping centres in the Helsinki region. As we enter a new development phase, we believe full ownership of the property will provide flexibility in terms of future development possibilities,” says Citycon’s CEO Marcel Kokkeel……………………………………….Full Article: Source

BlackRock’s Fink says sovereign wealth funds are staying in equities -CNBC

Posted on 16 October 2014 by VRS  |  Email |Print

U.S. asset manager BlackRock Inc has not seen more than one sovereign wealth fund sell out of equities in last six weeks despite the global market volatility, Chief Executive Officer Larry Fink told CNBC Wednesday morning.
Overall, Fink said he would like to see the U.S. Federal Reserve take action and raise interest rates to between 1 percent and 1.25 percent, which he believes would be good for the U.S. economy. The New York-based company reported a 10 percent increase in assets under management and a 26 percent increase in earnings from the third quarter of last year………………………………………..Full Article: Source

Blackstone Joins Mideast Funds for Stake in Dubai’s GEMS

Posted on 16 October 2014 by VRS  |  Email |Print

Blackstone Group LP is taking a stake in GEMS Education, the world’s biggest privately held schools operator, as part of a group of investors led by Dubai-based Fajr Capital Ltd.
Mumtalakat, the Bahraini sovereign wealth fund, is also part of the investment group taking a “significant” minority stake in GEMS’s emerging-markets business, covering the Middle East, North Africa and Asia, the company said today in a statement. Financial terms of the transaction weren’t disclosed………………………………………..Full Article: Source

Indian President Pranab in lobbyist role; Noway SWF

Posted on 15 October 2014 by VRS  |  Email |Print

President Pranab Mukherjee, blamed by some for driving away foreign investment as a UPA finance minister, is this week donning the mantle of chief lobbyist to re-ignite interest from Europe’s largest sovereign wealth fund — for Prime Minister Narendra Modi.
Norway holds Europe’s largest sovereign wealth fund — a state-owned investment fund used by nations to plough money usually into stocks, equities, markets or infrastructure projects that the country deems will earn it safe, high returns. Of its $890bn (Rs 54.3 lakh crore) sovereign fund, Norway has currently invested only about $4bn in Indian stock markets and specific infrastructure projects………………………………………..Full Article: Source

Penang woos Singapore investors following Temasek deal

Posted on 15 October 2014 by VRS  |  Email |Print

Amid a spat with Putrajaya over federal assistance to draw investors to Penang, the state government will boost its efforts to draw more Singaporean investors following its recent partnership with the republic’s Temasek Holdings to develop a RM11.3 billion business and a technology hub.
Chief Minister Lim Guan Eng, who is leading a two-day investment mission to Singapore tomorrow, said Penang wanted to sell the message that the northern Malaysian state was an ideal location, especially in terms of human talent……………………………………….Full Article: Source

Temasek to take stake in Devyani Intl

Posted on 14 October 2014 by VRS  |  Email |Print

Singapore’s state investor, Temasek Holdings, has decided to take a stake in Indian restaurant operator Devyani International. A Channel News Asia report said a Temasek spokesman has confirmed the investment but declined to provide details such as the value of the stake.
According to media reports, Temasek would buy an existing Rs. 100 crore stake in Devyani from ICICI Venture, the private equity arm of private sector ICICI Bank. Devyani International operates more than 300 food and beverage outlets in India, Nepal and Nigeria………………………………………..Full Article: Source

Vietnam Investment Arm Calls for Fewer State Stake Purchases

Posted on 14 October 2014 by VRS  |  Email |Print

A Vietnamese government investment arm that’s been newly charged with buying stakes in state companies with failed public offerings is calling for scaled- down purchases, countering an aggressive government plan. State Capital Investment Corp., which holds state stakes in listed companies, says it is asking the government to “narrow down and prioritize” the number of firms it has to invest in among the 340 businesses that are required to sell shares by end-2015, according to Deputy General Director Le Song Lai.
“We need from the government specific criteria for the stake purchases,” Lai said in a phone interview Oct. 10 in Hanoi. “The 340 companies is too many. It will be very hard for us to do the job with such vagueness.”……………………………………….Full Article: Source

Okonjo-Iweala woos investors to Nigeria

Posted on 13 October 2014 by VRS  |  Email |Print

Dr Ngozi Okonjo-Iweala, the Minister of Finance, has urged foreign investors to continue to invest in Nigeria through the Nigeria Sovereign Investment Authority (NSIA). Okonjo-Iweala made this known at a meeting with Business Council for International Understanding at the Annual Meetings of the World Bank and International Monetary Fund in Washington DC.
She said that Nigeria Sovereign Wealth Fund (NSWF) had been rated second most transparent in the world after that of Norway. “The NSWF has now been rated the second most transparent after Norway by the Sovereign Wealth Fund institute and that is saying a lot………………………………………..Full Article: Source

Singapore’s GIC eyes NZ retail assets

Posted on 13 October 2014 by VRS  |  Email |Print

The Government of Singapore Investment Corporation (GIC) has reportedly submitted a US$875 million-plus bid to acquire significant retail assets in New Zealand. According to Australia’s Business Spectator, the city-state’s sovereign wealth fund (SWF) is seeking to take possession of Scentre’s shopping malls in the country, as it continues its push into non-traditional assets classes such as real estate.
Scentre itself had taken control of the retail assets in Australia and New Zealand when they were spun-off from conglomerate Westfield earlier this year. Scentre was said to be mulling listing these assets on either the Australian or New Zealand bourse before the GIC offer came in. Scentre’s retail assets include large shopping malls in cities such as Auckland, Christchurch and Wellington………………………………………..Full Article: Source

GIC invests in US tech startup Square

Posted on 10 October 2014 by VRS  |  Email |Print

GIC, Singapore’s sovereign wealth fund, has invested in Square, a United States-based technology startup behind various products and services such as Square Register, a free point-of-sale app for the Android and iOS systems.
“As a long-term value investor, GIC believes the rising secular trend and penetration of mobile payment software will present good investment opportunities. Square, in particular, plays a key role in accelerating the acceptance of all forms of payments in the small and medium businesses’ sector,” GIC said in a statement issued on Friday……………………………………….Full Article: Source

Temasek to buy US$82m stake in India’s Devyani

Posted on 10 October 2014 by VRS  |  Email |Print

Temasek Holdings has agreed to invest US$82 million to buy a stake in Devyani International, operator of KFC, Pizza Hut and Costa Coffee chains in India, three sources with direct knowledge of the matter said. The sources said the Singapore state investor would use 1 billion rupees (S$20.8 million) to purchase part of a holding in Devyani by ICICI Venture, the private equity arm of ICICI Bank.
The rest would be a direct purchase in the restaurant chain operator, the sources added, declining to specify the percentage stake that Temasek would acquire. “The deal is done and an announcement is likely very soon,”one of the sources said………………………………………..Full Article: Source

GIC eyes Scentre’s $1bn NZ assets

Posted on 09 October 2014 by VRS  |  Email |Print

Singapore’s GIC is believed to have submitted an attractive proposal to acquire Scentre’s $1 billion-plus New Zealand portfolio, but it remains to be seen whether the company will take the offer or pursue a float of the ­assets.
Scentre, which owns the Australian and New Zealand shopping malls that were spun out of Westfield this year, is also widely believed to be contemplating spinning off the assets into a new vehicle that will be listed on either the NZ stock exchange or the Australian bourse. There is much speculation on the NZ portfolio with Scentre also tipped to have sounded out UBS and JPMorgan on a potential float………………………………………..Full Article: Source

Mubadala buys Hewlett Packard stake in IT services provider

Posted on 08 October 2014 by VRS  |  Email |Print

Abu Dhabi-based Mubadala Development Company on Tuesday announced the acquisition of Hewlett-Packard’s shares in regional IT services provider Injazat Data Systems. Through the acquisition of the 40 percent stake in Injazat, Mubadala said it is reaffirming its approach of investing in robust Information & Communication Technology (ICT) infrastructure and operations.
Injazat built the region’s first Tier IV data centre, offering organizations the highest levels of IT security, quality and operational reliability, Mubabala said in a statement, without saying how much it had paid HP for the stake………………………………………..Full Article: Source

Singapore’s GIC leads US$150M Series E round in Square

Posted on 08 October 2014 by VRS  |  Email |Print

US-based Square Inc yesterday received US$150 million in a Series E round led by the Government of Singapore Investment Corporation (GIC), according to the New York Times.
In the same report, a well-placed source noted that the financial technology startup will now be valued at US$6 billion. The spokesperson added that the round also saw past investors like Goldman Sachs and Rizvi Traverse Management as participants………………………………………..Full Article: Source

Permanent Fund debated as source of state cash for investment in gas export project

Posted on 08 October 2014 by VRS  |  Email |Print

Alaska may have an opportunity for a potentially risky but very profitable investment when it comes to decision time on a liquefied natural gas export project. But budget deficits are eating into Alaska’s readily available savings, and there may not be much other than the Alaska Permanent Fund left when it comes time to make those multibillion-dollar investments.
So should the Permanent Fund consider investing some of its $50 billion portfolio in a pipeline project?……………………………………….Full Article: Source

GIC acquires remaining 50% stake in RomaEst Shopping Centre

Posted on 07 October 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has acquired a 50 per cent interest in RomaEst Shopping Centre from a fund managed by CBRE Global Investors. GIC, which already owns 50 per cent of RomaEst through an affiliate, will be the sole owner of the Italian shopping centre. CBRE Global Investors will continue to be the asset manager for the centre.
GIC said in a news release on Monday (Oct 6) that the acquisition demonstrates its confidence in the long-term prospects for Italy and in the future demand for prime regional centres. In addition to RomaEst’s stable cash flows, GIC sees opportunities to add value to the centre through active asset management, including leasing and refurbishment strategies………………………………………..Full Article: Source

Singaporean wealth fund joins GBP1bn airport talks

Posted on 06 October 2014 by VRS  |  Email |Print

The Singaporean sovereign wealth fund is thought to be set to join Spanish infrastructure firm Ferrovial and Australian bank Macquarie in buying Aberdeen and Glasgow airports as part of a £1 billion deal. Sources close to the talks suggest that a deal could be announced early next week which would see Heathrow Airport Holdings (HAH) sell the two Scottish airports along with its Southampton site.
Although Ferrovial and Macquarie have previously been linked to a deal for the airports, according to a report yesterday the Singapore sovereign fund GIC is also looking to take an equity stake as part of an agreement………………………………………..Full Article: Source

Mexico set to become a rising investment honeypot

Posted on 06 October 2014 by VRS  |  Email |Print

Last week a private sovereign wealth fund, considered one of the original China bulls, made a large move into new geography and in so doing flagged to us where the smart money is looking in 2015.
The large sovereign wealth fund investment last week was made in Mexico — an economy thought to be a new contender and whose rejuvenated export-led market represents a China hedge for the US consumer and global investors next year………………………………………..Full Article: Source

China’s CIC, AVIC end talks to acquire Avolon, say sources

Posted on 03 October 2014 by VRS  |  Email |Print

China Investment Corp (CIC) and AVIC Capital Co Ltd have ended talks to acquire Avolon Holdings Ltd, making it likely that the aircraft leasing company will pursue an initial public offering, according to people familiar with the matter.
CIC, China’s sovereign wealth fund, and AVIC, a Chinese state-owned aerospace and defense company, were in talks to acquire Avolon for between $4 billion and $5 billion, Reuters reported in August. AVIC subsequently confirmed the discussions, cautioning there was uncertainty over the potential deal………………………………………..Full Article: Source

ICD mulls key investment in Nigerian cement firm

Posted on 03 October 2014 by VRS  |  Email |Print

Investment Corp of Dubai (ICD), the emirate’s sovereign wealth fund, said it is exploring further investment opportunities with Nigeria’s largest cement manufacturer Dangote after purchasing a minority stake in the African group last month.
Dangote Cement, which is listed on the Nigeria Stock Exchange, forms part of the Dangote Group, a diversified conglomerate of African businesses. “We have been looking at Africa for a long time. We are looking to do more business with Dangote and we have some ventures that we are exploring at the moment together,” Mohammed Al Shaibani told an Africa-focussed investment event in Dubai on Wednesday………………………………………..Full Article: Source

NantHealth Raises $320M Funding Round

Posted on 03 October 2014 by VRS  |  Email |Print

In what looks to be the largest funding round for Southern California in a very long while, Los Angeles-based NantHealth, the life sciences and technology firm started by billionaire Dr. Patrick Soon-Shiong, said Wednesday that it has raised a total of $320M in it Series B funding. The company said the round closed with a $250M investment from the Kuwait Investment Authority (KIA).
As part of the funding, the company said it has appointed a number of executives to its team, including naming Steve Curd as its Chief Operating Officer, Laura Beggrow as EVP, Commercialization, and Scott Holbrook to its board………………………………………..Full Article: Source

Russia’s Sovereign Fund Invests Lobbying $$$ in Capitol Counsel

Posted on 02 October 2014 by VRS  |  Email |Print

The Russian Direct Investment Fund, which has more than $10B in assets, has invested $90K in a two-month effort by Capitol Counsel LLC to educate US Treasury staffers and policymakers about its operation. The Financial Times reported Sept. 21 that RDIV is battling to preserve its goals as relations between Moscow and West plummet.
Russia’s sovereign fund has avoided US economic sanctions, though its parent, state-owned VEB, and supervisory board member Sergei Ivanov, who was Vladimir Putin’s chief of staff, are on the list. Capitol Counsel, which is headed by Democratic lobbyist John Raffaelli, is to assist RDIF correct “significantly misstated” press reports, according to the representation agreement………………………………………..Full Article: Source

Singapore’s GIC to invest over 200 mln euros in Spanish property firm

Posted on 02 October 2014 by VRS  |  Email |Print

Singaporean sovereign wealth fund GIC has agreed to pay more than 200 million euros ($252 million) for a 30 percent stake in unlisted Spanish real estate firm Gmp, the two companies said in a statement on Wednesday.
“As a long-term value investor, this is a good opportunity for GIC to gain access to a large and diversified office portfolio in Madrid and leverage on Gmp’s local expertise to grow our exposure,” said Chris Morrish, regional head of Europe at GIC real estate………………………………………..Full Article: Source

China’s CIC, AVIC end talks to acquire Avolon

Posted on 02 October 2014 by VRS  |  Email |Print

China Investment Corp (CIC) and AVIC Capital Co Ltd have ended talks to acquire Avolon Holdings Ltd, making it likely that the aircraft leasing company will pursue an initial public offering, according to people familiar with the matter.
CIC, China’s sovereign wealth fund, and AVIC, a Chinese state-owned aerospace and defense company, were in talks to acquire Avolon for between $4 billion and $5 billion, Reuters reported in August. AVIC subsequently confirmed the discussions, cautioning there was uncertainty over the potential deal………………………………………..Full Article: Source

Samruk Kazyna Privatisation Drive Offers New Investment Opportunities

Posted on 02 October 2014 by VRS  |  Email |Print

Kazakhstan’s Samruk Kazyna Sovereign Wealth Fund is moving forward with its plans to sell a sizable part of the enterprises it controls to the private sector. Both Kazakhstan-based and foreign investors will be able to buy shares in 106 companies the state-owned fund manages under the so-called second wave of privatisation. The estimated value of assets to be offered up for sale is $9 billion.
The first wave of privatisation took place in the 1990s when Kazakhstan moved to create a market economy out of the old Soviet, centrally controlled and planned economy. The challenge of the current wave of privatisation is defined as strengthening the foundations of the market economy. The key idea of this campaign is to give impetus to the further development of private business in the country………………………………………..Full Article: Source

CIC cuts stake in Noble Group

Posted on 01 October 2014 by VRS  |  Email |Print

China Investment Corp sold part of its stake in Noble Group, sending shares in the commodity trader tumbling and sparking fears the mainland sovereign wealth fund will eventually move to offload most of its holding. CIC, the second-biggest shareholder, sold shares equivalent to 4.5 per cent of the commodity trader.
The shares were sold at S$1.32 (HK$8.04), the bottom of an indicative range that topped out at S$1.35, raising S$396 million. It was not clear why CIC was selling the stake, but Nathan Gee, an analyst at Bank of America Merrill Lynch, said he did not expect any damage to Noble’s strategic relationships on the mainland………………………………………..Full Article: Source

CIC selling part of Noble Group stake, fans fear of more sales

Posted on 01 October 2014 by VRS  |  Email |Print

China Investment Corp will sell part of its stake in Noble Group Ltd at a 5 percent discount, sending shares in the commodity trader tumbling and sparking fears that CIC would eventually move to offload most of its holding.
The Chinese sovereign wealth fund, Noble’s second biggest shareholder, is selling shares equivalent to 4.5 percent of the commodity trader, a term sheet showed………………………………………..Full Article: Source

CIC to Cut Stake in Singapore Commodity Trader Noble Group

Posted on 30 September 2014 by VRS  |  Email |Print

Sovereign-wealth fund China Investment Corp. is seeking to raise up to 405 million Singapore dollars (US$318 million) by selling a portion of its stake in Singapore-listed commodity trader Noble Group, people with knowledge of the deal said Monday.
CIC, which currently owns close to a 15% stake in Noble Group, will see its holding fall to about 10% post sale, one of the people said. China’s sovereign-wealth fund had spent US$850 million in 2009 to buy a stake in the Hong Kong-based Noble Group, a diversified commodities company with assets ranging from Brazilian sugar mills to Australian iron ore to oilseed-processing facilities in China and India………………………………………..Full Article: Source

Temasek Holdings units take stake in homegrown shoe firm Star 360

Posted on 30 September 2014 by VRS  |  Email |Print

Heliconia Capital and Pavilion Capital, both units of Temasek Holdings, have made an investment in local firm Star 360, a distributor and retailer of sports and fashion footwear, apparel and accessories. None of the parties have disclosed the amount of the investment.
Heliconia is an investment firm that provides growth capital to Singapore’s leading small and medium sized enterprises, while Pavilion specialises in private equity investment in North Asia. As strategic partners, both firms will provide insight and advice on key management decisions………………………………………..Full Article: Source

Aabar wealth fund to work with Goldman Sachs on options for RHB stake

Posted on 29 September 2014 by VRS  |  Email |Print

Aabar Investments PJSC, owned by Abu Dhabi’s sovereign wealth fund, is working with Goldman Sachs Group Inc. as it explores options for its stake in RHB Capital Bhd., according to people with knowledge of the matter.
Aabar, the Malaysian bank’s second-largest shareholder with a 21.2 per cent stake, is seeking to protect the value of its investment as the lender negotiates a three-way merger with CIMB Group Holdings Bhd. and Malaysia Building Society Bhd., the people said. It hasn’t yet signed a formal mandate with Goldman Sachs, one person said, asking not to be identified as the talks are private………………………………………..Full Article: Source

Temasek in talks to buy stake in Indian firm

Posted on 26 September 2014 by VRS  |  Email |Print

Three investment firms, including Singapore’s Temasek Holdings, are in advanced talks to buy a 30 per cent stake in the retail arm of India’s Aditya Birla Group for US$400 million (S$508 million) to US$500 million, two sources with direct knowledge of the matter told Reuters.
The other two firms involved in the talks are LVMH Moet Hennessy Louis Vuitton’s private equity arm, L Capital, and International Finance Corp (IFC), a unit of the World Bank that offers investment, advisory and asset management services to encourage private sector development in developing countries………………………………………..Full Article: Source

Carlyle to Sell Stake in U.K.’s RAC to Singapore’s Sovereign-Wealth Fund

Posted on 26 September 2014 by VRS  |  Email |Print

Carlyle Group has agreed to sell a stake in U.K. roadside-assistant provider RAC to Singapore’s sovereign-wealth fund instead of selling shares in the company to the public as it previously intended. The deal values RAC at more than £2 billion ($3.3 billion), a person familiar with the transaction said.
Carlyle and GIC will jointly own a majority stake and RAC managers will own a minority of the shares, the companies said Thursday in a joint statement. The price wasn’t disclosed. The investment is expected to be completed by the end of the year………………………………………..Full Article: Source

GIC Agrees to Become a Shareholder in RAC With Carlyle

Posted on 26 September 2014 by VRS  |  Email |Print

Carlyle Group LP agreed to sell a stake in U.K. roadside assistance company RAC Ltd. to Singaporean sovereign wealth fund GIC Pte. The world’s second-largest manager of investment alternatives to stocks and bonds will become a joint shareholder with GIC, and RAC management will retain a minority stake, the two companies said in a statement today. The value of the transaction wasn’t disclosed.
“Both Carlyle and GIC believe that RAC has a clear strategy with significant growth potential,” Andrew Burgess, partner at Carlyle Group, said in the statement. “GIC will provide a solid partnership for the business.”……………………………………….Full Article: Source

Korea’s Wealth Fund Doubling Staff to Pick Buffett-Style Stocks

Posted on 25 September 2014 by VRS  |  Email |Print

Korea Investment Corp., the country’s $76 billion sovereign wealth fund, plans to almost double its research staff to pick stocks for two new funds that may eventually comprise 30 percent of its equity holdings.
KIC will probably increase the research unit to about 60 people by 2017 from the current level of 32, said Rhee Keehong, the fund’s deputy chief investment officer and research head. KIC, which only invests overseas, had about $35 billion in stocks and $25 billion in bonds last year, with the remainder in alternative assets and other investments………………………………………..Full Article: Source

Temasek arm signs 2nd LNG purchase contract

Posted on 25 September 2014 by VRS  |  Email |Print

Singapore state investor Temasek-owned Pavilion Energy has signed a second long-term contract to buy liquefied natural gas (LNG) for trading and supply to Asia, taking another step towards its goal of becoming a global company in the fuel.
Pavilion Energy said in a statement yesterday its wholly owned subsidiary Pavilion Gas Pte has struck a deal with BP under which the UK company will supply it with 0.4mn tonnes per year of LNG for 20 years from 2019. It did not say how much Pavilion would pay for the LNG………………………………………..Full Article: Source

Singapore wealth fund nears deal to buy 50% of RAC from Carlyle

Posted on 25 September 2014 by VRS  |  Email |Print

GIC, the Singapore-based sovereign wealth fund, is close to an agreement to buy 50 per cent of RAC from its owner, buyout fund manager Carlyle, in a move that is expected to derail plans to list the British roadside recovery company.
The private equity house is leaning towards a deal whereby it would keep half of RAC, sell the rest to GIC and pay itself a dividend by adding more debt to the company, in a so-called recapitalisation, according to people with knowledge of the discussions. The transaction would value RAC at more than £2bn including its debt………………………………………..Full Article: Source

GIC in talks to buy Carlyle’s RAC for over S$4 bln: Report

Posted on 25 September 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund, GIC , is in talks to buy the British roadside rescue business RAC from US private equity firm Carlyle Group for more than 2 billion pounds (S$4.1 billion), Sky News reported, citing a person familiar with the talks.
The British broadcaster said the sale to GIC was likely to end an expected share listing of RAC. Sky added that GIC might instead take a large minority stake in RAC before an initial public offering. Sources told Reuters in June that RAC was considering an IPO this year in a deal that media reports have said could value the company at 2 billion pounds………………………………………..Full Article: Source

Norwegian oil fund plans gradual shift to reference portfolio

Posted on 25 September 2014 by VRS  |  Email |Print

Norway’s Government Pension Fund Global (GPFG) is to replace its current strategic index with a new benchmark meant to offer greater flexibility. The new approach, which Yngve Slyngstad, chief executive of Norges Bank Investment Management (NBIM), said stemmed from a recent review of the fund’s approach to active management, would also encourage “gradual” growth of private investments while allowing for a consistent benchmark approach across all holdings.
Speaking at a seminar at the Norwegian Ministry of Finance, Slyngstad said the review by Andrew Ang of Columbia Business School, Michael Brandt of Duke University and the former president and chief executive of the Canada Pension Plan Investment Board (CPPIB), David Denison, had shown how the GPFG could exploit investment opportunities currently outside the index………………………………………..Full Article: Source

Norway’s opposition wants wealth fund to invest in infrastructure

Posted on 24 September 2014 by VRS  |  Email |Print

Norway’s $870-billion sovereign wealth fund should be allowed to directly invest in infrastructure such as wind farms and solar plants, the country’s opposition Labour party will propose, a plan gaining the support of the majority of parties.
The world’s largest sovereign wealth fund, which owns on average 1.3 percent of all listed companies worldwide, is currently mandated to invest in stocks, bonds and property abroad. But if the fund, set up to invest Norway’s oil and gas revenue, was allowed to expand the scope of its portfolio to include infrastructure projects, starting with renewables, it may greatly increase capital into the sector………………………………………..Full Article: Source

RAC owners in sales talks with Singaporean fund

Posted on 24 September 2014 by VRS  |  Email |Print

The private equity owner of RAC has decided to ditch a stock market float in favour of a £2bn-plus sale to Singapore’s sovereign wealth fund. Carlyle, which bought the breakdown business for £1bn from insurer Aviva three years ago, is locked in talks with Government Investment Corporation (GIC) of Singapore.
Sources indicated the sale, first reported by Sky News, could be announced as early as Wednesday afternoon. Although it is thought unlikely the final sale price will be announced alongside details of the transaction, Carlyle would only opt to sell rather than float the business in return for a healthy premium……………………………………….Full Article: Source

Singaporean Fund Revs Up GBP2bln RAC Takeover

Posted on 24 September 2014 by VRS  |  Email |Print

A Singaporean state fund is in secret talks to lead a £2bn-plus takeover of the RAC, a move that would end the prospect of a stock market listing of the famous roadside recovery business. Sky News can reveal that the Government Investment Corporation of Singapore (GIC) is discussing with Carlyle, the RAC’s existing owner, a deal that could be struck within days.
GIC is understood to have been interested in participating in a takeover of the RAC, which has 8.2 million members, for some time, having been enticed by the company’s stable cashflows and growth prospects, according to a person close to the situation………………………………………..Full Article: Source

L Capital, Temasek near Birla Retail deal

Posted on 24 September 2014 by VRS  |  Email |Print

Marquee international investors L Capital, Temasek Holdings and International Finance Corporation are in the final reckoning to buy minority shares in Aditya Birla Group’s retail holding company, people familiar with the matter said.
Billionaire Kumar Mangalam Birla is in the midst of combining his group entities Madura Lifestyle & Fashion, Pantaloons department stores and More supermarkets into a new listed company valued at $2.3 billion in enterprise valuation. Birla could raise as much as $400 million from two or three investors, though a final quantum has not been decided yet. Standard Chartered Bank is advising Aditya Birla Group on the deal………………………………………..Full Article: Source

Seven Energy, Sovereign Wealth Fund Sign $100m Investment Deal

Posted on 24 September 2014 by VRS  |  Email |Print

Seven Energy International Limited, an indigenous integrated oil and gas development, production and distribution company with interests in Nigeria, and the Sovereign Investment Authority (NSIA), Nigeria’s sovereign wealth fund, Tuesday announced a $100 million investment commitment.
Under the deal, NSIA through its Gas -to -Power funds managed on behalf of the Debt Management Office (DMO), signed a commitment letter for an investment of at least $100,000,000 in aggregate principal amount of senior secured notes due in 2023 to be issued and privately placed by Seven Energy Finance Limited………………………………………..Full Article: Source

Temasek takes on sustainability challenge

Posted on 23 September 2014 by VRS  |  Email |Print

A long-term investor with a strong public service sensibility and a massive portfolio must inevitably confront the issue of sustainability. For Singapore government-owned investment company Temasek Holdings, that time has begun in earnest, chairman Lim Boon Heng hinted on Monday at a dinner to mark Temasek’s 40th anniversary.
“This spirit of doing things today, with tomorrow very clearly in our minds also describes the ethos of Temasek,” Mr Lim said. “It forms our values and culture as a long-term investor, as a forward-looking institution and most of all, as a trusted steward.” Singapore President Tony Tan Keng Yam recalled that Temasek was created as a way to keep government from overly influencing its commercial interests………………………………………..Full Article: Source

RDIF Builds Ties With Freight Village Ru

Posted on 22 September 2014 by VRS  |  Email |Print

The Russian Direct Investment Fund (RDIF) has reached an agreement in principle regarding investment in the logistics holding company Freight Village Ru. Currently, RDIF is in negotiations with a number of leading foreign co-investors, who have expressed an interest in participating in the project. The final number of co-investors and their investment structure within the project is yet to be confirmed and will be announced at a later date.
The funds from the deal will be spent by Freight Village Ru to finance the construction of a large logistics complex, Freight Village Vorsino. This will allow the creation of a unified cluster of independent transportation firms, warehouses, distribution companies, logistics services providers, and industrial and trade enterprises with direct access to a multimodal terminal and to major freight corridors. The first stage of the project, which is the only of its kind in Russia, will be the construction of over 600,000 square meters of warehousing and industrial facilities with a shared logistics infrastructure………………………………………..Full Article: Source

The Norwegian sovereign wealth fund could be a natural investor in India’s infrastructure

Posted on 22 September 2014 by VRS  |  Email |Print

We have recently done work focusing on changing the investment strategy of the Norwegian sovereign wealth fund – with $910 billion on paper. It’s a true long-term investor – and would be the natural investor to make infrastructure investments in markets such as India.
They are not currently allowed to do so, though the government has taken on our suggestion to opening it up to infrastructure investments. We have also been looking at things from the Indian side: there is a genuine lack of long-term capital – we need to look at alternatives to banks………………………………………..Full Article: Source

Africa sovereign funds tread tricky path on investments

Posted on 22 September 2014 by VRS  |  Email |Print

As the oil producers of Sub-Saharan Africa rush to create sovereign wealth funds, competing pressures to boost living standards now while saving for the future can throw up as many problems as they solve. Jose Filomeno dos Santos, chairman of Angola’s fledgling $5 billion fund, noted that while his country has one of Africa’s highest economic growth rates, it still has one of the continent’s highest child mortality rates.
“(Angola) still lacks doctors, it still lacks hospitals,” he told sovereign wealth fund conference at London’s Chatham House last week. “These are things that take time to build. Investment has to be done so that there’s a generation in the future that the sovereign wealth fund will be serving,” he said………………………………………..Full Article: Source

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