Temasek buys £2.3bn stake in Standard Chartered

Singaporean investment company Temasek Holdings has bought an 11.55% stake in Standard Chartered from the Tan Sri Khoo Teck Puat estate for around £2.3 billion. The move makes it the largest single shareholder in the London-based bank.

Standard Chartered had been linked to a takeover by rival banks such as Citigroup following the death of its largest shareholder, Tan Sri Khoo, which led to a share price rally from 950p in the weeks following the death to a high of 1,539p a week ago. But stock has since tumbled by around 5% after Temasek insisted the investment was long-term and that it didn’t intend to sell the stake to a third-party.

“Asia is at an inflexion point, poised to open its markets and create opportunities for more than half of mankind,” said Gan Chee Yen, senior managing director for investments at Temasek. “Standard Chartered, with its outstanding leadership, is well-positioned to capture this growth. Investing in the company is consistent with our strategy of investing in Asia’s financial services sector, and it is an important part of our ongoing efforts of achieving a balanced portfolio.”

Standard Chartered offers retail and institutional customers a range of banking services, including structured products and derivatives. Last year, the bank made $2.7 billion in profits, up 19% on its 2004 results.