Skip to main content

Its Like The Sopranos Making You An Offer

Beware the friend who keeps patting you in the back, saying "well done, boy" ... cause its more likely he is patting you in order for you to cough up something. BFFs, Temasek and Chinese banks, have elevated their friendship to the next level, a disturbing marriage. Yesterday, the three largest banks in China have separately approached Temasek about buying its 17% stake in Standard Chartered. Officials of Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), and China Construction Bank (CCB) have "sounded out" senior officials at Singapore government's investment agency about buying the stake.

Temasek is the largest single shareholder in London-based StanChart, which makes two- thirds of its profit in Asia. Temasek sources confirmed the approaches but insisted that the agency had rebuffed the advances. StanChart executives are unlikely to welcome a change in its largest shareholder to another lender, as this could trigger fears about its future independence.

StanChart is a brilliant vehicle for big Chinese banks seeking to expand abroad, especially where Chinese banks do not necessarily need to have control. StanChart is very strong in India with 81 branches, plus it has secured Amex Bank (India) for US$860m back in september which will ehance their reach and clout. All up, StanChart will have 90 branches - this is significant because for foreign banks in India there are only a total of 258 bank branches.

I think the 3 Chinese banks approached Temasek, the purpose was not to buy the 17% stake, but to strategise moving ahead should they become minority shareholders of StanChart. Like I said earlier, the Chinese banks do not need control. They'd love to work with Temasek, to learn the ropes about integrating global operations. There is nothing to stop the 3 Chinese banks from collecting minority stakes from the open market.

StanChart top executives headed by Mervyn Davies, chairman, and Peter Sands, chief executive, are however thought to be opposed to Temasek selling its stake to another lender over fears that would compromise Standard Chartered’s independence. We have to remind ourselves that Temasek was the beneficiary of a few sweetheart bank deals a couple of years before the banks were listed. Temasek made tons when these bank stakes were listed. Now time to cough up some blood.

Temasek's Chinese Holdings:

a) Bank of China (5%)

b) China Construction Bank (6%)

c) China Eastern Airlines (8%)

Now, you don't get the OK to buy stakes in the above companies without "proper connections". Time to cough up!


Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.

My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.

I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.

My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.

Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:

p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far

I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…