Temasek’s unrealized $1/2 billion loss hidden in Pakistani bank merger?

In 2005, Temasek took a 25% stake in March and increased this to 72% 3 months later. This was likely based on the assumption that it was smarter than all other investors.

Taking such a huge stake means there was no plan B and Temasek stood to lose hundreds of millions if the bet went sour. It did.

Temasek woke up to its mistake only in 2011 and had been desperately looking to dispose of NIB. It finally managed to find a buyer last year but MCB Bank was only willing to take over NIB at a lelong price of about Rs1.6 or 2 cents per share.

Temasek was willing to accept a capital loss of 90% after 12 years.

Were PAP book smarties conned into parting with our hard-earned reserves from the get-go? Probably. Wealthy Pakistani locals couldn’t have been less well informed than our book smarties who had believed money could be easily made by crunching numbers thousands of miles away.

Temasek appears not to have learnt any lesson and continues to take concentrated positions in foreign entities. It should bear in mind that PAP has zero control over regulations in other countries, unlike in Singapore.

Temasek was clearly speculating in NIB and speculators do not hedge their currency risk. There is a cost to hedging and if Temasek does hedge every investment, it has not stated so on its website/annual reports. (Perhaps I may have missed out.)

From 2005 to 2017, the investment incurred more than 50% forex loss.

 

NIB’s loss is likely to top $500 million but this is unlikely to make news in MSM.

After the merger, Temasek will own about 6% of MCB bank. Should Temasek exit with even a small profit in the new entity, rest assured it will be played up by MSM without any reference to NIB’s loss.

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

 

 

 

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23 Responses to “Temasek’s unrealized $1/2 billion loss hidden in Pakistani bank merger?”

  • li:

    WowLau
    PeeOrgySadButtock many $$$
    CpeeF already in PARIAH门 leeGIRLY stated not people money
    Chee bye;return all my money @55
    Fuck U pigs

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  • Amos humiliate L*L and PAP:

    Ho Ching already lost S$5B in Merrill Lynch and Barclays during the 2008 financial meltdown but was not held accountable. Why?

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  • rukidding:

    PAP’s answer would be :

    a) No blame culture
    b) Lets Move On
    c) No need transparency or accountability lah
    d) No head will be rolling oso.

    Gheez…..

    Compare and contrast against AHPTEC and the hawker centre ceiling cleaning fiasco and the “ganging up” against opposition by all the PAP MPs and Ministers ????

    And,…lets not bring up and talk about AIMs as well as Lehman investment losses and “doings” of its member.

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  • oxygen:

    THE APPRENTICES WITHIN OUR SWFs, it seems, are PERPETUALLY INFATUATED with investments in high-risks banking stocks and so far, mostly ended with no orgasm of satisfied ending.

    Sinkieland is a financial centre no doubt, but it does NOT mean that banking is an easy or lucrative business. As I can see it, Sinkieland-originated home grown banks acquiring foreign banks have been badly screwed too – THE COUNTERPARTY RISKS ARE TOO MANY AND TOO POORLY UNDERSTOOD.

    Any investment without the visual of brick-and-mortar structure (bank buildings are most visible of this artificial beauty) seems to frightful or/and alien to Singkie’s business entrepreneurial endeavors. We are now left out of innovation and high tech world and brick-and-mortar dependent and related businesses are heading the direction of dinosaur ending soon.

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  • True ?:

    True or not ?
    if true should sack those responsible for the big losses.

    I rather they give the money to help the poor here.

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  • Hang Man Lee:

    As long as we dun tell the peasants, they won’t know.
    Ignorance is Bliss and frog stew!

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  • Mph:

    Greed only know how to take n take.
    Never noe how to grow ahead.
    Finally n up in a broke state.

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  • New Egg Yoke:

    These are NOT losses. Notice how EVERYTHING GIC and TH touches are always in the red.
    What does having casinos in Sinkyland have in common with Geez Ai Si (die) and TH? All are “LOSS” making enterprises for the common man with NO Transparency and Accountability!!! Wow!!!

    Step back and study them and you will understand these are MACHINERIES for “washing” money underground. So called “losses” are easily funnelled to the relevant destination. Losses no need pay dividends. The more losses, the more the pink demon can COLLECT retirement funds below all out noses. Wake up Dafts!

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  • Nizhemoshou:

    Something is very wrong or if time n again the methodology is to invest the hard earned reserves of the country in overseas entities where only fools would rush in but angels fear to tread.
    No transparency n accountability , so highly suspicious

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  • Patriot Tan:

    Without transparency people will suspect corruptions. It cud be a way of siphoning money out of our reserve. The huge loss in UBS cud be to bail out someone caught in 2009 financial crisis just what happened in malaysia MAS bailout. Maybe some singaporeans fear the collapse of ubs cud wipe out their secret deposits there or reveal their secret wealth & decided to step in with the very expensive rescue plan. Filthy rich are known to stash away their ill gotten wealth in swiss banks.

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  • Harry Kee Tua Kee:

    Since all these loses of public money were not reported, nor accounted for, I’m not wrong to suspect that those people managing the investments or even involve in stock gambling, are of DUBIOUS character. They may be political leaders, or related to these leaders, could have engaged or involve in unknown corruption practices. This is one of the likely reasons that they kept these activities as Top Secret.明人不做暗事。

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  • kf:

    If they state now that having the next president with vast experience in managing super huge funds is because we have lost lots of money in sovereign funds, will the upcoming batch of voters accept it ?

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  • Ah Peng Kia:

    Hang Man Lee:
    As long as we dun tell the peasants, they won’t know.
    Ignorance is Bliss and frog stew!

    In today’s internet age, there’s no excuse for peasants to not know. They choose the state they are in by being apathetic and giving their government a blank cheque election after election.

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  • No sayJosé:

    They shd stand trial and be found guilty.
    All sgs would relish that thought.
    If one day that comes true, then justice would have been served ! …and i mean true justice, not the PAP type.

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  • AVIC:

    Philip, another one for your research

    AVIC 2357

    HolderShares % Held

    GIC Pte Ltd. (Investment Management)
    as of 06 Apr 2017
    119.30m 5.06%

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  • Neo:

    The daft lesser mentality is like Cypher in Matrix.

    “I know this steak doesn’t exist. I know that when I put it in my mouth, the Matrix is telling my brain that it is juicy and delicious. After nine years, you know what I realize? Ignorance is bliss.”

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  • "short-or-medium term":

    //THE APPRENTICES WITHIN OUR SWFs, it seems, are PERPETUALLY INFATUATED with investments in high-risks banking stocks and so far, mostly ended with no orgasm of satisfied ending.//

    it is easier to “play around” with ah kong funds (after going through the nice presentation pack) than your own money lar; and can even shout “long term” (aka open-ended timeframe) when “short-or-medium term” does not go the white idiotic way.

    win, get bonus and credit. loss, shout for long term and socialize the loss.

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  • one-trick pattern:

    //Sinkieland-originated home grown banks acquiring foreign banks have been badly screwed too – THE COUNTERPARTY RISKS ARE TOO MANY AND TOO POORLY UNDERSTOOD.//

    aiyoh. sinkie land is so “structured” and “sterile” (so many sinkies are also structurally daft daft and move in accordance to what white idiots say).

    many other countries are so “unstructured” and at times “chaotic” in their chut-pattern dealings and white idiotic think they can predict their patterns. a lesson in hand, breexit and trump and now sinkie land relationship with middle kingdom. within a span of 3 years, all patterns change ka-liao suddenly.

    even the white idiotic one-trick pattern is so predictable.

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  • C'est la vie:

    *****
    The level of opacity, injustices against its own people and mega “cover ups” are just, literally adding up.

    Wondering ……… when and at what stage, will “enough be enough” or,

    ………. the BS that ultimately breaks the “citizens back” !!!
    **
    *****

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  • money talks:

    like most things here,TH/GIC used to be good when the CHEAPER OLD GUARDS were running them but ever since they were made to STEP DOWN,things began to MALFUNCTION here till TODAY!

    LESSON: THE HIGHER THE PAY,THE POORER THE PERFORMANCES OF GAHMEN.
    REASON: TOO BUSY COUNTING MONEY OF LOOKING INTO RICH CPF STATEMENTS,NO TIME TO
    DO REAL WORK FOR THE PEOPLE.

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  • RDB:

    They have lost multiple 10s of Billions before. So what is 1/2 a billion man? Not her or TH’s money nor GIC’s too? PEENUTS as is ours what!

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  • Bapak:

    Do you know who are involved in Grab? Go check it out.

    Amos humiliate L*L and PAP:
    Ho Ching already lost S$5B in Merrill Lynch and Barclays during the 2008 financial meltdown but was not held accountable. Why?

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  • alibaba40thieves:

    Tis thus dwarf mdb lossess..mana bolih?
    Gambling wif our monies – tis is capital-free gambling.
    VTO at next erection.

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