Chitchat Temasek sell telco In Touch shares to Singtel

Saw the paper today that Temasek sold Intouch shares for $1.585b or 60.83 baht apiece after buying guide them at 49.25baht per share; seems to suggest that Temasek has make a profit from the investment. However a check on historical data show Temasek bought Shine Corp at US $1.88b.

"On Monday, 23 January 2006, the Shinawatra family sold its remaining 49.6% stake in Shin Corporation to two nominees of Temasek Holdings (Cedar Holdings and Aspen Holdings). The Shinawatra and Damapong (Potjaman's maiden name) families netted about 73 billion baht (about US$1.88 billion)."

In actual fact, $1b loss with today's exchange rate. More with the US-S $ exchange rate 10 years ago. Not to mention all the indirect and opportunity cost that will associate with the economic calculation.

Did the MSN try to portray a different story?

Help me to understand this transaction: Temasek, who owns majority stake in Singtel, sold assets of Temasek to Singtel and the latter pays its 'parent', in which the 'parent' also partly owns the 'child'. In effect, there's a 2-level ownership of In Touch? Double counting in profits, if any?

Imo, sounds like incest, which the 'baby' (In Touch in this case) is both children of the 'parent' which make it sibling to Singtel, as well as child of Singtel?

What is there to gain for Temasek in selling assets to their underlings?

Temasek is selling Intouch to Singtel together with its stake in india's Bharti.
Temasek already offloaded partial of its Bharti stake to Singtel earlier.
Bharti deal alone Temasek only managed to recoup 30% of its original investment (but high sell low).
If not offload to Singtel maybe can't get back 30% even.
Why msm never report this?

I am not sure if we should be angry or sad by the persistent conduct of the Govt on matters related to Temasek as well as the conduct of the local press. Both of them continue to mislead, misreport and slant their actions and deeds in a manner that is not just unethical but gains no benefit to the country at all.

Temasek has over the last 2 years has been slowing and deliberately off-loading shares in public listed companies and investing in start-up and private listed companies. What ever transparency that forced Temasek to make public disclosure to the various stock-exchanges need no longer apply in private held interest. Citizens and the public at large including foreign fund analysts will not longer be in a position to measure performance of Temasek in time to come except for the few blue chip stocks in GLCs. These stocks in SIA, DBS, Singtel etc will be become window dressing as they generally are expected to perform well in view of their monopolistic positions.

Brightkid said:

Help me to understand this transaction: Temasek, who owns majority stake in Singtel, sold assets of Temasek to Singtel and the latter pays its 'parent', in which the 'parent' also partly owns the 'child'. In effect, there's a 2-level ownership of In Touch? Double counting in profits, if any?

Imo, sounds like incest, which the 'baby' (In Touch in this case) is both children of the 'parent' which make it sibling to Singtel, as well as child of Singtel?

What is there to gain for Temasek in selling assets to their underlings?

Click to expand...

Ok, I will try explain this to you. Its called creative accounting.

-Temasek wants to claim and show a nice profit on its stake in In Touch
-Temasek needs to sell it at a certain price to realize this nice profit, and report that on the annual report, but no one will buy its shares at the price they want
- In January of this year, you could have bought the shares for less then 50 baht.
- For most of the year up to Aug, the share price was under under 60 baht
- Temasek then arrows one of its subsidiaries to buy its shares at 60.83 baht.
- Singtel was the unlucky one chosen to buy it. Does it even want it or need it? Probably not. Why would it pay that price for it? Obviously it had no choice. If Temasek asks Singtel to buy it at 150 baht per share, they will still have to do it.
- Temasek off loads the shares and reports it on their profit and loss.
- They are happy, SIngtel is unhappy, and Sinkies get conned. Its basically one hand give money to the other hand.

Look at it this way:

Your Father bought a house for $1 million. A few years later the housing market has fallen. His mistress accuses him of being a bad businessman. So, to prove her wrong, he will sell the house at a profit to show her his business acumen. But the market is down now. He cannot get back even $1 million for the house. So, he tells you to form a company and buy the house from him for $1.3 million dollar, hence showing a $300K profit. Like a dutiful son, you do that. Now he claims to his mistress he is a fantastic businessman. She gets hot for him and does the nasty for him. Everyone is happy accept you because you lan lan got to overpay for his house.
-

I presumed, its LEEGALLY accepted by Law.

nothing weird, it is just that singtel being knighted by temasek, now known as Sir Singtel!

scroobal said:

I am not sure if we should be angry or sad by the persistent conduct of the Govt on matters related to Temasek as well as the conduct of the local press. Both of them continue to mislead, misreport and slant their actions and deeds in a manner that is not just unethical but gains no benefit to the country at all.

Temasek has over the last 2 years has been slowing and deliberately off-loading shares in public listed companies and investing in start-up and private listed companies. What ever transparency that forced Temasek to make public disclosure to the various stock-exchanges need no longer apply in private held interest. Citizens and the public at large including foreign fund analysts will not longer be in a position to measure performance of Temasek in time to come except for the few blue chip stocks in GLCs. These stocks in SIA, DBS, Singtel etc will be become window dressing as they generally are expected to perform well in view of their monopolistic positions.

Click to expand...

It's a repeat of 2009 when the fucking no shame bitch had to sell our crown jewels, the three power plants on the cheap to cover Temasek's huge multi-billion Dollar losses in Merrill Lynch and Barclays Banks.