The Chinese media reported today (1 Jul) that Temasek and GIC would likely be releasing their latest financial results for the last fiscal year in the coming 2 weeks.
It reported that analysts are predicting that both Temasek and GIC might be hitting negative returns this time.
In the case of Temasek Holdings, the consensus is that its total asset value would fall 2.5 to 5 per cent for the last FY.
The media cited that the Sino-US trade disputes and global economic slowdown as 2 main factors impacting the performance of Temasek and GIC.
However, not all investments are due to economic reasons.
Sharp drop in Bayer’s share price due to more than 10,000 pending lawsuits
Take for example, last year Temasek invested into German pharmaceutical company Bayer. In fact, Temasek put money into Bayer to help it acquire Monsanto, a U.S. company.
Bayer sold 3.6 per cent stake to Temasek for 3 billion euros at 96.77 euros per share. The money was used as part of Bayer’s plan to takeover Monsanto. Together with its existing holding in Bayer at the time, Temasek owned about 4 percent in Bayer after the transaction. By June 2018, with Temasek’s help, Bayer successfully acquired Monsanto to become the biggest seed and agricultural chemical maker in the world.
But soon after the investment, news emerged that Monsanto was being sued for its weed killer product, Roundup, in California. Last Aug, a California state court ruled that Roundup caused the terminal cancer of a former school groundskeeper. The jury found Monsanto had “acted with malice or oppression” and awarded the plaintiff US$289 million in damages. The damages were later reduced to US$78 million. Thereafter, more lawsuits appeared.
In a second case, Bayer lost again at a federal court in March this year. The jury found that the plaintiff was not warned about the herbicide’s alleged cancer risks and awarded him the amount of US$80 million. Presently, there are more than 10,000 lawsuits pending.
Not surprisingly, Bayer share price dropped. It has been steadily sinking since the first adverse verdict in the Roundup lawsuit was announced last August. Last Fri, Bayer’s share traded at 60.94 euros. From 96.77 to 60.94 euros, Temasek has lost at least close to 40 per cent from its original investment of 3 billion euros.
According to GIC’s website, the CPF Board invested Singaporeans’ CPF monies in special government bonds called the Special Singapore Government Securities (SSGS). GIC then manages these monies raised by the government and on behalf of the government. “So while the CPF monies are not directly transferred to GIC for management, one of the sources of funds for the Government’s assets managed by GIC is the proceeds from SSGS,” GIC said.
In any case, it remains to be seen what Temasek and GIC will be announcing in the coming 2 weeks.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
You May Also Like

Grab & Uber fined S$13 million by consumer watchdog for anti-competition merger

The Competition and Consumer Commission of Singapore (CCCS) has fined Grab and…

Former SingFirst Sec-Gen Tan Jee Say wants to rejoin Singapore Democratic Party

On Monday (29 June), former Singaporeans First (SingFirst) Secretary-General Tan Jee Say…

日10岁小女孩访问港示威者 “了解真相应与当事人对话”

根据日本WBS电视台报导,指一名小学四年级学生岛津知佳,于14日从日本千里迢迢来到香港国际机场,只为了要与当地示威者对话,了解他们抗争的动机。 香港反《逃犯条例》的集会仍在持续,特别是本周一和周二,示威者聚集香港机场办“接机”集会,希望能向来往游客阐述香港情况。不幸在周二晚仍演变出现混乱情况,有示威者涉及殴打两名中国籍男子。 随后香港机场管理当局向法庭申请临时禁令,禁止任何人在机场内参与任何示威、抗议活动。不过,据了解仍有零星示威者聚集机场,有者手持标语向旅客道歉。 和香港集会有关的报导,也引起这位日本小女孩的兴趣,但她坦言,她并不清楚抗争运动的背景,认为直接和当事人了解十分重要,而决定到香港作实地考察。 于是,在爸爸岛津宽司的陪同下,拿着事先准备好的问题,以英语询问现场示威者他们参与集会的目的。虽然偶尔会被拒绝,但知佳未感到气馁,而是继续寻找受访者。 一些示威者则告知她,不想看到香港失去自由;有者则表示抗争并不是为了要独立,他们也感谢小女孩的支持。 而知佳在接受WBS电视台采访时表示,虽然一开始会感到紧张,但他希望能汇集示威者们表达的意见,帮忙宣传出去。  

针对网络言论完成调查 警方向辣玉莎发出严厉警告

选举期间,警方称接获针对工人党盛港集选区候选人辣玉莎(Raeesah Khan)的投报,而展开调查。 警方今早(17日)发声明,指辣玉莎2018年2月2日和今年5月17日,在网络发表的评论涉嫌挑起族群和宗教间敌意,抵触刑事法典第298A条文,而2018年2月2日的言论,则涉嫌藐视法庭。 对此,警方向辣玉莎提出严厉警告。 在本月5日,辣玉莎已在工人党召开的临时记者会上,表示本身原意是提升大家对少数族群问题的醒觉,惟她表示若这些言论冒犯任何社群,为此致歉。 她表示对于任何弱势群体的问题都深表关注,但对于此事会全面配合警方调查。