Temasek buys stake in Asia-focused Ivanhoe Mines
Temasek Holdings has purchased a 5.5% stake in Canada’s Ivanhoe Mines, a move seen as part of ongoing efforts to increase the natural resources share of its portfolio. The transaction was channeled through Tembusu Capital, a private equity firm affiliated to the Singapore sovereign wealth fund.
Temasek bought 40.85 million shares in Ivanhoe, which is listed on the New York Stock Exchange, according to a filing dated June 7. Based on the company's closing price from the previous day, the holding was worth $421.2 million.
Ivanhoe is controlled by Rio Tinto. On May 24, it announced a $1.8 billion rights issue to raise capital for the continued development of the Oyu Tolgoi copper-gold-silver project in southern Mongolia. Rio Tinto pledged to take up its full allotment with respect to its 51% shareholding and also provided a standby commitment for the full amount.
Ivanhoe, which focuses on Asia Pacific assets, holds majority interests in Mongolian coal miner South Gobi Resources and copper-gold miner Ivanhoe Australia, and a 50% stake in Kazakhstan miner Altynalmas Gold, in addition to Oyu Tolgoi.
Temasek, Singapore's second-largest sovereign wealth fund, had assets under management of $158 billion for the financial year ended March 2011. Financial services account for 36% of its holdings compared to just 3% for energy and resources, and the fund has been trying to redress the balance. For example, recent investments include Kunlun Energy and Cheniere Energy, both in alliance with RRJ Capital.
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