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Sovereign Wealth Funds Briefing - Archive | August, 2010

BHP Billiton makes $39bln move for Potash Corp

Posted on 18 August 2010 by VRS  |  Email |Print

From Telegraph: Sovereign wealth funds have also been very active, with recent figures showing that state-owned entities spent $12bn in the second quarter on company purchases globally, compared with just $1.1bn in the first three months of the year.
BHP offered $130 a share for Potash Corp, a 16pc premium to Monday’s closing price, but this was rejected outright by the company’s management……………………………………….Full Article: Source

Mumtalakat eyes UK property

Posted on 18 August 2010 by VRS  |  Email |Print

From Tradearabia.com: Mumtalakat, Bahrain’s sovereign wealth fund, expects to return to profit this year and is eyeing property investments in the UK, said a top official.
“This year should be a profitable year, the first half is already looking very good,” chief executive Talal Alzain said……………………………………….Full Article: Source

Excess Crude Account decimated to U.S.$460 mln

Posted on 18 August 2010 by VRS  |  Email |Print

From Tradingmarkets.com: The sum of $3 billion has been taken from the Excess Crude Account. $2 billion of it was shared among the three tiers of governments while $1 billion was set aside for the proposed Sovereign Wealth Fund which is yet to be signed into law.
With the withdrawal, the depletion of the Excess Crude Account brings its current value to only about $460 million……………………………………….Full Article: Source

Global M&A involving sovereign wealth funds pick up in Q2

Posted on 17 August 2010 by VRS  |  Email |Print

From Reuters: Global corporate mergers and acquisitions activity involving sovereign wealth funds rose to more than $12 billion in the second quarter with 33 deals completed, Thomson Reuters data showed on Monday.
Global announced M&A volumes involving state investment vehicles stood at $12.5 billion in the second quarter, up from just $1.1 billion in the first three months of this year……………………………………….Full Article: Source

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BlackRock may court wealth funds if banks exit

Posted on 17 August 2010 by VRS  |  Email |Print

From Bloomberg: BlackRock Inc. may court investors such as sovereign wealth funds as Bank of America Corp. considers a sale of its 34 percent stake in the asset manager, Credit Suisse Group AG’s Craig Siegenthaler said.
New regulatory requirements in the U.S. and Europe may also prompt two other top shareholders, PNC Financial Services Group Inc. and Barclays Plc., to reduce their stakes in the world’s largest money manager, New York-based Siegenthaler said today in a note to clients……………………………………….Full Article: Source

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Bahrain’s Mumtalakat sees return to profit in 2010

Posted on 17 August 2010 by VRS  |  Email |Print

From Arabianbusiness.com: Bahrain’s sovereign wealth fund Mumtalakat expects to return to profit in 2010 and is eyeing property investments in the United Kingdom, its chief executive told Reuters Insider on Monday.”This year should be a profitable year for us, the first half is already looking very good,” Talal Al Zain said in an interview in London.
Mumtalakat, which bundles Bahrain’s non-oil state-owned companies, is one of the smaller sovereign wealth funds in the world’s top oil-exporting region, with $9.1 billion in assets at the end of 2009……………………………………….Full Article: Source

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Bahrain eyes UK property purchase

Posted on 17 August 2010 by VRS  |  Email |Print

From Maktoob.com: Bahrain’s sovereign wealth fund Mumtalakat expects to return to profit in 2010 and is eyeing property investments in the United Kingdom, its chief executive told Reuters Insider on Monday.
“This year should be a profitable year for us, the first half is already looking very good,” Talal Al Zain said in an interview in London……………………………………….Full Article: Source

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Deyaar plans to drop Flamingo Creek project

Posted on 17 August 2010 by VRS  |  Email |Print

From Thenational.ae: Deyaar Development, the publicly traded property developer, is planning to abandon a Dh372 million (US$101.3m) project because it believes the master developer Sama Dubai is unlikely to complete the infrastructure. The scheme is 50 per cent owned by Investment Corporation of Dubai.
Deyaar said the project was Flamingo Creek, launched by National Bonds in The Lagoons, a planned Dh80 billion development of towers that were to have been built around Dubai Creek……………………………………….Full Article: Source

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Singapore Mapletree plans $928 mln Japan property fund

Posted on 17 August 2010 by VRS  |  Email |Print

From Reuters: Mapletree Investments, a real estate firm wholly owned by Singapore state investor Temasek Holdings, said it plans to launch an around 80 billion yen ($928 million) Japan property fund this year in a bid to expand in the country’s property sector ahead of its rivals.
The new fund, with a 30 billion yen equity portion, will invest in business-related properties such as data centres, research and development facilities and office buildings just outside central Tokyo and other big cities, Terence Heng, general manager of Mapletree Investments Japan told Reuters in an interview……………………………………….Full Article: Source

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China-related mergers and acquisitions to rebound

Posted on 17 August 2010 by VRS  |  Email |Print

From Peopledaily.com.cn: Most China-related merger and acquisition deals have rebounded strongly in the first half of the year, and set the scene for robust activities for the remainder of 2010 and into 2011, accounting firm PricewaterhouseCoopers (PwC) said . Another notable investment was China Investment Corporation’s double investment in PennWest Energy, aggregated to $1.2 billion in total.
Chinese outbound merger and acquisition deals for the first six months of 2010 have reached record levels, up by more than 50 percent over the same period last year, PwC said in a report……………………………………….Full Article: Source

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Central Huijin to sell first batch of bonds Aug 24

Posted on 17 August 2010 by VRS  |  Email |Print

From Dow Jones: Central Huijin Investment Ltd., the domestic-investment arm of China’s sovereign-wealth fund, will sell its maiden batch of bonds totaling up to CNY54 billion ($7.93 billion) on Aug. 24, two people familiar with the situation told Dow Jones Newswires on Monday.
The debt issue will be the first batch of Central Huijin’s planned bond issue, which could total up to CNY187.5 billion by 2011, and comes as the company faces increasing financing pressure in its efforts to maintain its controlling stakes in major domestic banks, which have been gearing up for share offerings and convertible bond sales in recent months to boost their capital after a sharp increase in lending last year………………………………………Full Article: Source

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China’s state capitalism poses ethical challenges

Posted on 17 August 2010 by VRS  |  Email |Print

From Atimes.com: State-owned companies and sovereign wealth funds based in authoritarian countries are often as opaque as their governments. Is it not reasonable to wonder how such a company or fund will manage its new assets before approving a sale with potential security implications?
On the other hand, if relatively free market economies are to compete successfully with state capitalist systems, it won’t be by trying to beat them at their own protectionist game……………………………………….Full Article: Source

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Can China save Liverpool from the red?

Posted on 17 August 2010 by VRS  |  Email |Print

From Financeasia.com: As businesses go, English Premier League football teams tend to be spectacularly good at losing money. Kenneth Huang, chairman of Hong Kong’s QSL Sports, has made an offer of ₤400 million that the Chinese government was rumoured to be backing through its sovereign wealth fund, China Investment Corporation.
Official state media reported the story, adding substance to the rumours, but CIC has denied it, unsurprisingly……………………………………….Full Article: Source

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GM mulls “cornerstone” sales in IPO

Posted on 17 August 2010 by VRS  |  Email |Print

From Reuters: General Motors Co is considering selling a chunk of the carmaker’s stock to institutions as the company prepares for its initial public offering. GM is mulling a plan under which sovereign wealth funds or pension funds would serve as “cornerstone investors,” a technique often used for large initial public offerings to show that key investors are supporting the deal, four people said.
“It’s on the table and would be part of the normal course of the IPO,” one of the sources said, asking not to be named because the preparations for the IPO are private……………………………………….Full Article: Source

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Scottish minister visits Norway to discuss renewables and money

Posted on 17 August 2010 by VRS  |  Email |Print

From Theforeigner.no: Scotland’s First Minister Alex Salmond is coming to Norway today to discuss ways of exploiting Scotland’s offshore wind potential and strengthen trade links. Also on the agenda are discussions with ministers about the management and operation of the Oil Fund (Government Pension Fund – Global)
He’ll begin his three-day trip by meeting heads of Statoil when he visits their offices in Stavanger and Oslo today and tomorrow……………………………………….Full Article: Source

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Foreign reserves at a record high

Posted on 17 August 2010 by VRS  |  Email |Print

From Macaudailytimes.com.mo: MSAR’s foreign currency reserves rose by 1.2 percent to reach MOP 165.7 billion at the end of last month, a new high record. Compared to a year ago, reserves have increased by 17.7 percent and are on an upward trend since October 2009, according to the latest statistics of the Monetary Authority of Macau.
Foreign reserves could now cover almost three times (271 percent) the amount of Patacas in circulation, which is also a new record. Furthermore, reserves represented 33 times the foreign currency in circulation……………………………………….Full Article: Source

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Alarm bells at sovereign funds’ farmlands foray

Posted on 16 August 2010 by VRS  |  Email |Print

Tony BurkeFrom Farmonline.com.au: Sovereign wealth funds have become the central issue in the debate over foreigners buying up rural properties in Australia. While there are many examples of foreigners buying land in the past couple of years, Qatar-based Hassad Food, which is backed by the Qatar Investment Authority, exemplifies sovereign wealth funds buying up rural land in Australia to feed not only Qatar but other Middle Eastern countries concerned about food security.

Hassad has bought more than $40 million worth of sheep stations in northern NSW and South Australia in the past six months and intends to increase its land holding……………………………………Full Article: Source

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Sovereign investment funds stakes in Europe firms fall

Posted on 16 August 2010 by VRS  |  Email |Print

From Reuters: Stakes in British and continental European publicly-listed companies held by state-owned investment funds have fallen slightly since the start of 2010 after sharp rises in 2009, according to Thomson Reuters data.

The combined total of listed equity assets held by government-owned funds in Europe outside Britain fell to $206.5 billion at the start of August from $217.1 billion in the first quarter of 2010…………………………………….Full Article: Source

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Norway state pension fund reports 2Q return of -5.4pct

Posted on 16 August 2010 by VRS  |  Email |Print

From WSJ: The Norwegian Government Pension Fund Global reported a negative return of NOK155 billion, or -5.4%, in the second quarter, dragged down by a decline in global equity markets.

The fund was made up of 59.6 percent in equities and 40.4 percent in fixed-income securities at the end of the quarter, which respectively gave returns of -9.2% and +1%……………………………………Full Article: Source

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Norway takes GBP860mln hit over BP oil spill

Posted on 16 August 2010 by VRS  |  Email |Print

From Telegraph: Norway’s sovereign wealth fund saw 5.4pc wiped off its investments in its second quarter as its BP shareholding near halved in value in response to the giant oil spill in the Gulf of Mexico.
Government Pension Fund Global , which funnels tax revenue frosm the country’s oil and gas into foreign investments, said the crisis-hit company was its single worst-performing investment. The BP shareholding fell from 18.9bn kroner (£1.96bn) to 10.6bn kroner, representing a drop of around £860m…………………………………….Full Article: Source

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Norway’s Oil Fund snaps up Greek, Spanish debt in hunt for higher yields

Posted on 16 August 2010 by VRS  |  Email |Print

From Bloomberg: Norway’s sovereign wealth fund, the world’s second largest, snapped up bonds from debt-ridden southern European countries to tap into higher yields.

“We have actually increased our exposure,” said Yngve Slyngstad, the head of Norges Bank Investment Management — the central bank’s asset management arm — in an interview in Oslo…………………………………….Full Article: Source

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Firms falling short on climate action: Norway fund

Posted on 16 August 2010 by VRS  |  Email |Print

From Dailytimes.com.pk: Companies in energy-intensive sectors such as oil production, chemicals and transport are doing too little to combat climate change, Norway’s $455 billion sovereign wealth fund said on Friday.

The fund, number two in the world behind that of the United Arab Emirates, said it hoped a survey it released on Friday would spur companies to do more on global warming, in the same way that a previous report had helped curb use of child labour…………………………………….Full Article: Source

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Nigeria disburses $4.7bln to govt, plans wealth fund

Posted on 16 August 2010 by VRS  |  Email |Print

From Arabnews.com: Nigeria has distributed $4.7 billion in revenues and windfall oil savings to government for July, a massive disbursal which is likely to trigger a drop in bond yields and interbank rates next week, dealers said.

Africa’s biggest oil and gas producer shares its revenues among three tiers of government each month — federal, state and local — and tops the disbursal up with a withdrawal from its windfall oil savings if there is a shortfall…………………………………….Full Article: Source

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Nigeria’s sovereign wealth fund takes off

Posted on 16 August 2010 by VRS  |  Email |Print

From Tribune.com.ng: The proposed sovereign wealth fund has taken off. This follows the setting aside of $1 billion for the fund by the Federal Government.

President Goodluck Jonathan had told the National Economic Council, some months ago, to establish a framework for the fund within three months…………………………………….Full Article: Source

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Government sets aside $1bln for wealth fund

Posted on 16 August 2010 by VRS  |  Email |Print

From 234next.com: The federal government on Friday announced that it has set aside the sum of $1billion (about N150billion), in preparation for the Sovereign Wealth Fund (SWF) take off.

The Accountant General of the Federation, Ibrahim Dankwambo, who disclosed this in Abuja at the end of the Federation Accounts Allocation Committee (FAAC) meeting on Friday, said the three tiers of government agreed to share a total of about N704.3billion for the month of July…………………………………….Full Article: Source

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FG to establish sovereign wealth fund for real sector

Posted on 16 August 2010 by VRS  |  Email |Print

From Sunnewsonline.com: The Federal Government has disclosed plans towards sourcing low-cost term funds, as a way of further fastracking economic development goals aimed at returning the real sector of the economy back to life, with the establishment of a Sovereign Wealth Fund.

The Federal Government’s real sector support and development strategy was unveiled by the Minister of Finance, Mr Olusegun Aganga, at a recent parley with members of the Organized Private Sector in Lagos…………………………………….Full Article: Source

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Elected politicians put Nigeria at risk as $20bln oil fund is squandered

Posted on 16 August 2010 by VRS  |  Email |Print

From Businessdayonline.com: The culture of profligacy and expensive lifestyle among Nigeria’s elected politicians which focuses on the benefits of today without a commensurate transfer to Nigerians, is putting the country at serious economic risk, say the World Bank and analysts spoken to by BusinessDay at the weekend.

They warn that Nigeria is at risk of not having a fall back fund should it run into major financial difficulties following the fast depletion of its Excess Crude Account (ECA) from $20 billion in 2007 to a mere $450 million…………………………………….Full Article: Source

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Excess Crude Account decimated to $460mln

Posted on 16 August 2010 by VRS  |  Email |Print

From Thisdayonline.com: The sum of $3 billion has been taken from the Excess Crude Account. $2 billion of it was shared among the three tiers of governments while $1 billion was set aside for the proposed Sovereign Wealth Fund which is yet to be signed into law.With the withdrawal, the depletion of the Excess Crude Account brings its current value to only about $460 million.

There are growing concerns that so much have been taken from the Excess Crude Account without tangible improvement in the lives of Nigerians…………………………………….Full Article: Source

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FG draws down $3bln from Excess Crude Account

Posted on 16 August 2010 by VRS  |  Email |Print

From Vanguardngr.com: The appetite for more funds by the three tiers of government has forced the Federal Government to draw down a $3 billion in one fell swoop from the Excess Crude Account, leaving behind a mere $460 million.
Accountant-General of the Federation, Alhaji Ibrahim Dankwambo, disclosed at the monthly Federation Account Allocation Committee, FAAC, meeting, in Abuja, weekend, that $1 billion of the amount was set aside for the Sovereign Wealth Fund…………………………………….Full Article: Source

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Barwa’s first-half profit advances 33pct after state support on loan payment

Posted on 16 August 2010 by VRS  |  Email |Print

From Bloomberg: Barwa Real Estate Co.,which has Qatar’s sovereign wealth fund as one of its biggest shareholders, reported a 33 percent increase in first-half profit as the largest Qatari developer by assets received help from the gas-rich country’s government to repay some Islamic finance obligations.

Net income rose to 498.4 million riyals ($137 million), or 1.63 riyals a share, from 374.2 million riyals, or 1.43 riyals, in the year-earlier period, the company said in a statement to the Qatar Exchange website today…………………………………….Full Article: Source

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IDB joins $1 bln fund with Saudi, Qatari groups

Posted on 16 August 2010 by VRS  |  Email |Print

From israelidiamond.co.il: IDB Holding Corp will launch a $1 billion fund with Credit Suisse Group AG and two groups from Saudi Arabia and Qatar that will invest in emerging markets. The other two Credit Suisse shareholders in the fund are the Saudi Arabian investment firm Olayan Group, a private multinational enterprise comprising 50 companies and affiliated businesses, and the Qatar Investment Authority (QIA), a sovereign-wealth fund.

“We see a great potential in the emerging markets, which constitute a long-term growth engine for the global economy,” IDB Chairman Nochi Dankner said. “The intensification of the emerging markets is part of a significant financial-political process occurring throughout world, of which the financial crisis was but one of its peaks, where the economic hegemony is gradually shifting from the West to the East…………………………………….Full Article: Source

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India’s race to capture rare earths, nipped in the bud?

Posted on 16 August 2010 by VRS  |  Email |Print

From Mineweb.co.za: Whether it is $25 billion or just $5 billion, the Indian government has decided against setting up a Sovereign Wealth Fund for financing overseas acquisitions by Indian corporates, notably those dealing in rare earths. For long, the Indian government has been debating the institution of a Sovereign Wealth Fund (SWF) that would allow the country’s forex reserves to be used for investment in mineral and oil assets.
The country’s most recent SWF proposal, (the earlier one that was nixed was to the tune of $25 billion) was a joint effort by the ministry of petroleum and the ministry of external affairs, and involved the conception of a fund to buy strategic mineral assets. Though most expectedthe SWF to buy oil for the country, the target this time appeared to be rare earth deposits…………………………………….Full Article: Source

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China raises stakes in Indonesia

Posted on 16 August 2010 by VRS  |  Email |Print

From Financeasia.com: Indonesia’s State Enterprises Minister Mustafa Abubakar said on August 2 that China Investment Corporation (CIC), the country’s $300 billion sovereign wealth fund, had expressed interest in investing in three of Indonesia’s state firms — coal miner Tambang Batubara Bukit Asam, electricity utility Perusahaan Listrik Negara (PLN) and port operator Pelabuhan Indonesia II.

Initial investment is likely to be $2 billion next year, but that figure could increase more than twelve-fold to $25 billion, say sources. CIC invested $58 billion overseas last year, according to its annual report…………………………………….Full Article: Source

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Pharmaniaga fits into Boustead’s growth plan

Posted on 16 August 2010 by VRS  |  Email |Print

From Thestar.com.my: It was an open secret that Khazanah Nasional Bhd-controlled UEM Group wanted to sell its stake in Pharmaniaga Bhd and had been looking for the right buyer in the past year or so. Pharmaniaga is a steady, profitable business that has never lost money since it went public a decade ago, but was considered not the right fit for UEM or Khazanah.

On the other hand, Boustead Holdings Bhd chief executive Tan Sri Lodin Wok Kamaruddin needs an established name to launch the group’s foray into the healthcare business in a big way…………………………………….Full Article: Source

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QIA, Saudi entities partner Credit Suisse fund

Posted on 13 August 2010 by VRS  |  Email |Print

From Gulfnews.com: The Qatar Investment Authority and the Saudi Arabian Olayan Group will partner Israel’s IDB Holdings and Swiss bank Credit Suisse in a $1 billion (Dh3.67 billion) credit fund targeted at emerging markets.
Each of the partners will contribute $250 million to seed the fund, people close to the transaction told Gulf News. QIA, Olayan and IDB all have a shareholding in Credit Suisse……………………………………….Full Article: Source

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African nations see pros to managing oil wealth without transparency

Posted on 13 August 2010 by VRS  |  Email |Print

From Csmonitor.com: Some African countries say the path to success lies in putting oil revenues into sovereign wealth funds that operate outside public scrutiny.
The continent’s top oil exporters, and even some of its newcomers like Ghana, are taking advice from similarly resource-endowed countries that run state revenues through SWFs, many of them in the Middle East and Asia……………………………………….Full Article: Source

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Africa eyes East for help on sovereign funds

Posted on 13 August 2010 by VRS  |  Email |Print

From Thepeninsulaqatar.com: Africa’s nascent sovereign funds are turning to Asia and the Gulf for a steer on how to manage resource revenues, a move that could shield wealth for the future and lure more attention from international investors.
But there is no simple “cut and paste” model as Africa faces a challenge in striking a balance between spending today to build infrastructure and reduce poverty and saving for tomorrow, as well as guarding against corruption and squandering……………………………………….Full Article: Source

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Adia, Asian SWFs eye stake in AIA’s US$15bln IPO

Posted on 13 August 2010 by VRS  |  Email |Print

From Uaeinteract.com: Abu Dhabi Investment Authority (Adia) and two other sovereign wealth funds have expressed interest in investing in the US$15 billion initial public offering planned by American International Group’s (AIG) Asian life insurance unit.
AIG has started talks with potential investors to sell stakes in its Asian life insurance business AIA ahead of its planned IPO, sources with direct knowledge of the matter said……………………………………….Full Article: Source

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AIG talking to big investors on AIA IPO

Posted on 13 August 2010 by VRS  |  Email |Print

From Reuters: American International Group Inc has started talks with potential investors to sell stakes in its Asian life insurance business AIA ahead of AIA’s planned IPO, sources with direct knowledge of the matter said.
Several financial investors, including Temasek Holdings , China Investment Corp and Abu Dhabi Investment Authority have expressed interest in buying cornerstone stakes in AIA, they added……………………………………….Full Article: Source

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Khazanah has 64pct acceptance level for Parkway

Posted on 13 August 2010 by VRS  |  Email |Print

From Thestar.com.my: Khazanah Nasional Bhd had secured a 64.1% level of acceptances in its voluntary general offer (VGO) for the takeover of Singapore hospital group Parkway Holdings Bhd as at Tuesday.
While the actual closing is at 5pm on Monday, Integrated Healthcare Holdings Ltd (IHHL), which is an indirect wholly-owned subsidiary of Khazanah, has in effect gotten the necessary majority to take over Parkway at $S3.95 (RM9.25) per share……………………………………….Full Article: Source

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Central Huijin to raise up to RMB 187.5 bln via bond issues

Posted on 13 August 2010 by VRS  |  Email |Print

From China Knowledge: China Central Huijin Investment Ltd, the domestic investment arm of the nation’s sovereign wealth fund, China Investment Corp, plans to issue its first batch of bonds as early as end of August to raise about RMB 54 billion and to raise up to RMB 187.5 billion by the end of 2011 via bond issues, the Wall Street Journal reported, citing a source with the knowledge of the matter as saying.
Central Huijin expects the bond issues to help maintain shareholdings in Chinese major state-owned banks, said the sources……………………………………….Full Article: Source

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Everbright IPO to raise up to $3.21 bln

Posted on 13 August 2010 by VRS  |  Email |Print

From WSJ: China Everbright Bank Co., owned by Central Huijin Investment Ltd., the domestic investment arm of China’s sovereign-wealth fund, aims to raise up to 21.7 billion yuan ($3.21 billion) in its initial public offering in Shanghai, after setting a 2.85 yuan-3.10 yuan price range for the share float, said a person familiar with the situation Friday.
The midsize bank is expected to price its IPO at the top end of the range, as most major Chinese stock listings have fetched a higher-than-expected valuation, benefiting from ample liquidity in China’s financial system and an improved stock-market climate, analysts say……………………………………….Full Article: Source

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CIC invests in US real estate via the backdoor

Posted on 13 August 2010 by VRS  |  Email |Print

From Corporatefinancingweek.com: At a time when many institutional investors are still licking their wounds over loses in real estate investment portfolios in the US, the deep-pocketed China Investment Corporation (CIC) is busy buying its way in.
Significantly, the Chinese state-backed investment vehicle is doing so via the backdoor. In line with CFW ’s key market view that sovereign wealth funds (SWFs) are set to become increasingly active investors, China’s CIC has moved to acquire the Harvard University endowment interest in a collection of real estate funds worth a combined US$500mn……………………………………….Full Article: Source

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Group won’t enrich Hicks, Gillett

Posted on 13 August 2010 by VRS  |  Email |Print

From AP: A group of Chinese investors said Friday that any offer it makes to buy Liverpool from Tom Hicks and George Gillett Jr. won’t enrich the embattled American co-owners. Marc Ganis, whose Chicago-based company Sportscorp Ltd. has helped form the investment group, said it first contacted Liverpool chairman Martin Broughton on Monday, a day after reports of a possible bid first surfaced.
China Investment Corp. — the country’s sovereign wealth fund — would not have a direct ownership stake in the club. However, Ganis said it may be part of an investment vehicle organized by Yang and his financial team that would have a passive ownership interest……………………………………….Full Article: Source

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India declines to join the SWF herd

Posted on 13 August 2010 by VRS  |  Email |Print

From Hindustantimes.com: It didn’t get much notice, but the Indian government stated in Parliament that it had deep-sixed a plan to set up a sovereign wealth fund (SWF). The idea of an Indian SWF makes an appearance every two years or so.
After wasting a few hundred man-hours of the bureaucracy’s time, it is examined and then dropped – only to be brought back in a new form……………………………………….Full Article: Source

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Enel in talks with sovereign funds on EGP stake sale

Posted on 12 August 2010 by VRS  |  Email |Print

From Dow Jones: Italian power utility Enel SpA is in talks with sovereign funds, among other investors, as it prepares to sell a minority stake in its renewable energy subsidiary, Enel Green Power, according to a person familiar with the matter.
Enel plans to sell about 30% of its renewables unit in late October but has yet to decide whether to do so by means of a market listing or a private placement……………………………………….Full Article: Source

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Africa eyes East for help on sovereign wealth funds

Posted on 12 August 2010 by VRS  |  Email |Print

From Reuters: Africa’s nascent sovereign funds are turning to Asia and the Gulf for a steer on how to manage resource revenues, a move that could shield wealth for the future and lure more attention from international investors.
But there is no simple “cut and paste” model as Africa faces a challenge in striking a balance between spending today to build infrastructure and reduce poverty and saving for tomorrow, as well as guarding against corruption and squandering……………………………………….Full Article: Source

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CIC sells another 1.6mln Morgan Stanley shares

Posted on 12 August 2010 by VRS  |  Email |Print

From Dow Jones: China Investment Corp. continued to pare down its Morgan Stanley (MS) stake, unloading another 1.6 million shares of the stock, according to a regulatory filing late Wednesday.
Over the past three weeks, China’s sovereign-wealth fund has sold 25.5 million shares of the investment bank for $692.4 million. CIC could be selling the shares to keep its stake in Morgan Stanley below 10%, in order to avoid closer regulatory scrutiny……………………………………….Full Article: Source

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Dumping Morgan Stanley

Posted on 12 August 2010 by VRS  |  Email |Print

From Theasset.com: China Investment Corp (CIC) stands to lose an awful lot of money in Morgan Stanley – a first investment it will never forget. That’s unless China’s sovereign wealth fund can somehow get rid of its remaining shares in the blue chip US investment bank before a deadline on its equity units being converted into shares is triggered.
CIC has been trying to do exactly that over the last few weeks, conducting a steady, one-way campaign of selling Morgan Stanley stock in the secondary market……………………………………….Full Article: Source

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Arab investors join Latin America’s real estate fiesta

Posted on 12 August 2010 by VRS  |  Email |Print

From Arabic Knowledge@Wharton: The Qatar Investment Authority recently bought a number of London landmarks, including a large portion of Canary Wharf, luxury retailer Harrods and the Savoy Hotel.
Yet enthusiasm for those markets is waning. Amid the recent financial woes befalling U.S. and European real estate, some Arab investors have suffered embarrassing losses. That includes Dubai’s Istithmar World’s foreclosure sale of the W New York Union Square hotel for US$2 million, which the firm had bought for US$282 million in 2006……………………………………….Full Article: Source

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