Temasek continues exit streak with Fortescue divestment
Singaporean sovereign wealth fund Temasek Holdings raised $877 million through the sale of its entire 4.1% stake in Australia’s third-largest iron ore miner Fortescue Metals Group to a group of overseas institutions.
According to local media, Temasek's stake in Fortescue is the fifth-largest block in the company. Founder Andrew Forrest is its main backer, holding 31%, and PRC iron and steel group Hunan Valin and US-based Leucadia National are among its other cornerstone investors. A Reuters report noted that Temasek offloaded its stake for $6.76-$6.88 a share, amounting to 4.3-6.0% discount to its last-traded price.
Temasek's divestment comes at an active exit period for the SWF, suggesting a realignment of its asset portfolio. The same week it sold its shares in Fortescue, Temasek offloaded its nearly 6% stake in Thailand's Bumrungrad Hospital, revealed via a letter to the Stock Exchange of Thailand that seemed to indicate the hospital had not been notified prior to the sale. In October, it also fully exited its 9.6% stake in Korean banking major Hana Financial Group for $607 million on the public market, at an approximate 3.5% discount to Hana's latest closing price at the time.
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