Singapore's state-owned investment company Temasek Holdings Pte Ltd yesterday has sold its entire stake in South Korean financial major Hana Financial Group Inc for $605 million, in an attempt to reduce the fund's exposure to the financial sector, and increase its focus on more promising areas such as energy and resources.
Earlier yesterday, the island-nation's sovereign wealth fund invested $400 million in Brazil's Odebrecht Oil & Gas (OOG), a unit of diversified industrial conglomerate Odebrecht SA.
Angelica Investments Pte held by Temasek sold its entire 9.6-per cent stake in Hana or 20.4 million shares at 33,400 won (approximately $29.60) a share through a block deal executed yesterday, Reuters reported quoting an official at Credit Suisse, which managed the transaction.
The sale price represents a 6-per cent discount to Wednesday's closing price of 35,500 won per Hana share, and well below the indicative range of 34,300-35550 won for the deal.
Observers feel that Temasek's exit could be setback for Hana, South Korea's fourth-largest financial institution, which is in the process of bidding for the Korean government's 57-per cent stake in another financial major Woori Finance Holdings. The stake is valued at over $6 billion.
Singapore-headquartered Temasek is an investment house managing assets worth S$186 billion ($143 billion) primarily in Asia, supported by 12 affiliates and offices in Asia and Latin America. The company holds a diverse portfolio of assets targeting long-term returns, and since its inception 36 years ago, has generated a return of 17 per cent compounded annually.