Tycoon Khoo laughing in his grave, StandChart stake sold to Temasek in 2006 deep underwater

The thing with our scholars is they know nothing about business.  What they are good at is throwing billions in tax dollars at successful businesses in the hope that all will turn out well.

But most of the time they don’t, especially when Temasek (or GIC) invests overseas because PAP is not at hand to help tweak laws and unlevel the playing field to their advantage.

One such investment is Temasek’s Standard Chartered Bank investment in 2006.

Temasek had thought it was ‘pow chiak’ when it paid 2.3 billion pounds/S$6.44 billion for a 11.55% stake from dead billionaire Khoo.

Executive director, Simon Israel must have been ecstatic: “We are indeed privileged to have this opportunity to invest in a unique franchise with an outstanding board and management team.”

According to a trustee of the estate: “My late father would be happy as he had wanted the block to be sold to a proven long term investor and had a high regard for Temasek.”

A “proven long term investor” sitting on almost 50% capital loss after a decade? [ Temasek ]

Temasek bought the stake at about 1510 pence. After 3 rights issues, StandChart is trading at 787 pence today.

And that’s excluding a 35% exchange rate loss.

Today, the 154 million StandChart shares are worth … S$1.4 billion, excluding dividends.

Turns out that StandChart’s “outstanding board and management team” destroyed billion$ in shareholder value.

Did Temasek anticipate StandChart would be in such a bad shape?  Obviously not.  But it’s really not a problem for Temasek as all the funds for rights issues belong to Ah Kong, right?

And Ah Kong money is unlimited.  Part of the US$55 million used in the Keppel corruption also belongs to Ah Kong.  And the fines paid for the bribery scandal.

Guess someone must be laughing non-stop in his grave at the “proven long term investor”.

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

 

 

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20 Responses to “Tycoon Khoo laughing in his grave, StandChart stake sold to Temasek in 2006 deep underwater”

  • just1more:

    No sound no picture from the Parliament. Why opposition did not raise such issues? We see lots of money disappearing because of bad investment.

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  • Kam Lim Boo:

    Scholars may have a bit of I. But why some like to use them is because scholars are nerdy and weak men. Easy to dominate using your authority over them.

    Unlikely to rebel.
    Good as kah Kia.
    Easily INTIMIDATED and scared.

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  • Grace CB Fuk:

    Ah Gong dun earn money for you. He takes money from you.
    All the money he lost cums from you , stupid. He has tons of gold but these cum from you, stupid.

    Lucky punts, they take credit and commissions.

    Unlucky Losses, debit from your account.

    Best job in the world. Best sales commission in the world.

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  • C'est la vie:

    *****
    It’s rather like been let loose in a Casino with unlimited funding for one to indulge, without conditions !!!

    Admittedly, it’s grossly unfair to compare that with an Engineer, provided unlimited “Govt” funding to “invest” with nil conditions nor accountability.

    Hang on ……… that is precisely what it is !!!
    ***
    *****

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  • Selfiish Sinkie Syndrome:

    “…But it’s really not a problem for Temasek as all the funds for rights issues belong to Ah Kong, right?”

    All the money belongs to the people. It is the nation’s money (yours an mine and the sweat and blood money our forefathers accumulated through hardwork) that is all being frittered away by the current famiLEE.

    No wonder old saying that wealth cannot last 3 generations. The useless son openly destroying everything, while the daughter-in-law secretly pocketing everything, while the 69.9% still blur in everything.

    I pity the next generation of these 69.9% Sinkies. They may end up riding motorbikes up into Malaysia to find work in the future. Opposite of what is happening now.

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  • Bapak:

    Now I understand why they always money not enough, must increase taxes. Now it makes sense for them to use an Indian to sit in as Malay PE.
    After yesterday rain, now I understand “ponding” = “inside in not within 200m”.
    After yesterday Parliament meeting, I don’t understand why government is no control for a GIC organisation. Then why D1 is Chairman of GIC? I laki don’t understand.

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  • Thank you Phillip Ang:

    Phillip Ang you are really something. You are the very few that has the know-how and skills to present such articles. And the guts.
    And as expected it is open to arguments. On the other side they will have their version, their justification for what they did. Two sides to any story they always say. That is why we need a strong opposition, to keep watch and help in the smooth running governance of the country in every aspect and respect, hopefully the ruling clique and the opposition sincerely carrying out their duties as elected representatives of the people.
    Now that you had mentioned “Khoo”, it triggers loose old thoughts. Those of us working in the middle and higher levels in finance and moving in that circle, obviously not privy to actual details, and always wary of the sensitivity of the information you hear, and careful when giving comments during meetings or in certain places, but you cannot help hearing the speculations and the drama and the “curses”, and “Brunei”, and “connections” and the “black rumors” swirling around and it is difficult to connect the dots.
    So much talk and gossip.
    But no smoke without fire they say!
    Big boys’ games!
    Who do you believe!
    So that’s why we need knowledgeable strong opposition.
    The Keppel saga was going on for so many years!
    It set you thinking and feeling uncomfortable.
    And they possibly could be others.
    Who really knows.
    Thank you Phillips Ang. Always looking out for your articles. You and Leong and Oxygen and Augustine and Rabble Rouser and others, what you write about open up eyes. Hope all this will lead to betterment and goodness.

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  • patriot of Temesak:

    What else is NEW???…How much is stashed aside with their HUMONGOUS SALARIES & Bonuses???

    Who Pays for all these LOSSES while they CASH in regularly…

    The 70% IDIOTS and 30% reluctant Patriots!!!

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  • Evil Tyrant and PAP Terror:

    $$$$$$$$$$$$$$$$$$$$$$$$$$$$

    However about … easy money … by handing out the paper message … and getting S$30K for free to everyone !!!

    $$$$$$$$$$$$$$$$$$$$$$$$$$$$

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  • Evil PAP:

    Phillip Ang is getting on the nerve on PAP, especially Husband and Wife team.

    To say that he is merely being monitored is an understatement. Being monitored is just the start of the Orwellian Nightmare. The real terror is what lies beyond the monitoring, why are they monitoring in the first place and what are they trying to achieve?

    Let’s not trust my words as I am just a some random cybernut uttering nonsense. Instead, let’s take a look at the actions of Lee Hsien Yang, son of LKY who knows the ins and outs of the political system in SG. This honourable son of the Great Leader, LKY fled for his life to Hong Kong, after publicly acknowledging that he was monitored, and fear the use of organs of state against them.

    Or in their own words,

    “We feel big brother omnipresent. We fear the use of the organs of state against us and Hsien Yang’s wife, Suet Fern. The situation is such that Hsien Yang feels compelled to leave Singapore”

    “We feel extremely sad that we are pushed to this position. We are disturbed by the character, conduct, motives and leadership of our brother,”

    For Phillip Ang to be still uttering blasphemy against the almight PAP, he must have resisted all attempts by the evil regime to convert him into another PLP so far. Will Phillip Ang fall into temptation someday or will he continue to be a true patriot and continue checking on the PAP absolute power.

    To stand against the PAP, one must have a clean mouth. Saying the wrong things can get one sued until pants drop. Not only that, being “monitored” or “prosecuted” are all dirty words. Which can get you sued like Roy or locked up in IMH like Amos or ISD. Worst is being locked up in IMH because they will feed you drugs to “treat” /destroy your mind, like Ravi now being given Mandatory treatment order to drug his mind.

    If Lee Hsien Yang is “not my brother” like what Goh Chock Tong said, he would already have been sent to IMH for mandatory treatment for being a “nut”. So all you “not my brother” out there, please take note of the tactics and stay safe from the evil ones, while continue to speak out for fellow Singaporeans. Even one man down will be a huge loss to Singapore.

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  • Rabble-rouser:

    Kudos to Phillip Ang brilliant exposé of Temasek Holding’s ‘brilliant’ acquisition of Stanchart Bank from Khoo Teck Puat. Illuminates Temasek’s ‘earth-shaking’ strategy of ‘Buy High, Go Lower’ for Stanchart or in the recent UBS sale ‘Buy High, Sell Very Cheap’. And at least in the UBS sale, the Swiss Francs currency conversion was at least stable! But this one has a double whammy – Stanchart poor price share price plus £ currency depreciation of 35% (Brexit) make this investment stands out as Temasek’s investment prowess – the Art of losing money by the bucketful & going lower in the process.
    Anyway, didn’t one PAP Minister once said that by returning retiree’s CPF monies, they would proceed to have them wasting their CPF monies chasing after whores in Batam, wastes their CPF payout & then coming to the govt for welfare handouts? They were imply that S’poreans were so stupid in general! But how smart were they (ie. PAP govt/SWF) in the investments art. Not so wonderful, I’ve guessed! No one has a monopoly over wisdom & smarts! Better to be humble!
    Where is S’pore headed? GLCs failing (SMRT, SPH, Comfort Delgro) &/or losing money everywhere (Keppel, Sembcorp Marine?); SWF poor record of investments (UBS, Stanchart) & a PAP govt whom are resting on past laurels (of 1st Gen PAP leaders) but are clueless & drifting going forward. Big salaries mandated by the late LKY dulling the competitive spirits of politicians making them a ‘Strawberry Generation’ of spoilt politicians! Focusing on GDP growth to kick in kpis & trigger bonuses! What else?

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  • LIONS:

    No wortie$$$,THEY will say its LOONG TERM investments?

    So,NO LO$$???

    Now,KHOO FAMILY can go mkt n buy a few times more shares than they sold if they want?
    But STANCHART FULL OF AH LOONG’s INDIAN N PEENOISE FTs,PRODUCTIVITY WILL REMAIN LOW PR GO EVEN LOWER,ya?

    So,DUMP STANCHART!

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  • No 1 Knows d Future?:

    > Temasek – “We are indeed privileged to have this opportunity to invest in a unique franchise with an outstanding board and management team.”
    -
    Just as many US hedge funds posting mediocre returns in 2017 –
    Lesson – “after analysis, still, no one can predict future returns”.
    -
    Scratch that. Correction –
    > A “proven long term investor” sitting on almost 50% capital loss after a decade?
    That means, Khoo sold his stake “near the Top”???
    w Temasek left “holding the bag”
    Lesson – Who is the smart ones? ? ? :(

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  • pap selected INDIAN president:


    The thing with our scholars is they know nothing about business. What they are good at is throwing billions in tax dollars at successful businesses in the hope that all will turn out well.

    But most of the time they don’t, especially when Temasek (or GIC) invests overseas because PAP is not at hand to help tweak laws and unlevel the playing field to their advantage.

    very well said, bro.

    NONE of them know anything about business. if not for the pap tweaking CPF rules to supply them with unlimited no need to account S$ to play, they would have kaput long ago.

    NOTICE they pay a dollar and reap cents, all the time?

    IF it is their own money they would not have done so. BUT because it is citizens’ CPF money which they abuse without citizens’ permission and no need to be accountable, they can continue to spend a dollar and reap cents.

    WORSE when the market rises, and they make some money by default, they say they are talent and pay themselves S$m bonuses. WHEN they loose money, especially when the market falls, they blame market and continue to pay themselves S$m in bonuses. SEE. these pap Ljs and pap Cbs. THIEVES. market rise they say talent. market falls they NEVER blame themselves.

    see that fat slop 3 star who sank NOL? NOL under temasick? anyway within a year someone else could turn around and make money. WTF.

    see that dismal quack 3 star who volunteered at S$m in mrt? mrt under temasick? anyway AFTER 5 ffffing long years no only no improvement but langgar now. WTF.

    see that botak 3 star in AStar? AStar under temasick? anyway HOW much has he wasted of taxpayer money? ffff. spend a dollar and reap cents no need pap folks lah. EVEN our old hawker center cleaner no schooling also know how to spend dollar and reap cents. Cb. THESE pap MFs all so incestuous. LIARs all of them. WTF.

    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    pap says when INSIDE is not within (200m). to put it another way, within (200m) is not inside. WTF.
    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

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  • Temasek's foray go under water:

    I recalled Ho Ching’s defiant stance in Temasek’s investment debacle during the aftermath of the Lehman’s provoked financial meltdown which led to Temasek’s and GIC’s gargantuan losses, insisting that Temasek will continue to maintain a huge presence in banking.

    Now with blockchain and peer-to-peer banking becoming a reality, including making banking available to the billions of the hitherto unbanked, thus enabling them to bypass the traditional banks and other financial institutions such as Western Union or MoneyGram, traditional banking will become obsolete soon.

    And Temasek’s vast investment in banking, including its huge foray into Chinese banks will go under water very soon.

    So be prepared for more goalpost shifts on your CPF savings that will make it further from your reach, and for more indirect tax increases. (They won’t raise direct taxes for that would mean that they, the top-salaried decision makers themselves, would have to bear a heavier load than your elderly used cardboard and tin-can collectors, so that will not happen, whereas the burden of indirect taxes will be shared equally by all).

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  • AWAS Phillip!:

    Beware of the ‘new’ law, many Singaporeans know you are being ‘eyeballed’!

    It is a matter of time….

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  • DunKnowWhatTheyDoing:

    Plain n simple, they just play tikam-tikam with our monies…
    HC got a degree in business or financial investing or any equivalent?
    The same with the other 82 ministars who seem to ‘just show up ‘ for work n sign the papers..but the real work is done by the 2nd or 3rd in command n others.
    When anything goes wrong this lower down minions who earn so much less always take the brunt.

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  • Standard Chartered Manhattan B:

    Was a cardmember since 2000. With the locals manning the card center back then, stanchart visa was the card I always used. Things started to slide after 2009, the foreign staff at the call center was nowhere as nice and professional as the locals. It came to a head when the renewal card was not sent to me. After speaking to an indifferent staff, I learned that the Esprit visa was not longer issued. But there was no notice from the bank nor did they bother to ask if I wanted to switch to other stanchart cards.

    There are other banks which are hungrier and want people to sign up as card members. And better perks too. So long, Sanchart.

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  • CCK:

    Loosing Your money by the billions is the unique expertise of Temasek … and the CEO continues to collects … what the Chairman ? sleeping on the job ? why need to pay a Chairman when he is just another yes man ?

    It continues to be wonder why SG dafts continue to let such bleeding of Your money to go on … just give them $5 medical check up, and they happily close their eyes on PAP misdeeds …

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  • Harmau is Indian:

    Grace CB Fuk:
    Ah Gong dun earn money for you. He takes money from you.
    All the money he lost cums from you , stupid. He has tons of gold but these cum from you, stupid.

    Lucky punts, they take credit and commissions.

    Unlucky Losses, debit from your account.

    Best job in the world. Best sales commission in the world.

    Somebody said socialize losses but privatised profits

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