| Temasek Review 2011
Investment Highlights
For the year ended 31 March 2011, we maintained our discipline of steady investment and divestment to reshape our portfolio. In all, we made S$13 billion of investments and S$9 billion of divestments.
Our portfolio companies provide a solid foundation for our returns and future activities. We strengthened our portfolio with over S$4 billion of recapitalisations, including the rights issue of Standard Chartered.
We continued to invest in transforming economies with growing middle income populations in Asia and other growth regions, while remaining open to selective opportunities in the mature economies.
We invested over S$3 billion in China Construction Bank and Bank of China during their respective rights issues. Other investments in China included S$90 million in Asian Citrus, one of the largest orange growers and tropical fruit juice suppliers, and an investment in New China Life, a Beijing-based insurer. Post March 2011, we invested in Shanghai Pharmaceuticals, one of the largest integrated pharmaceutical companies in China.
In India, an investment in GMR Energy gave us a S$280 million exposure to the country’s growing power sector. We also invested S$240 million in the country’s premier multi-asset class exchange, the National Stock Exchange of India.
Our investments in Vietnam included Hoang Anh Gia Lai, a leading resources and real estate conglomerate with operations in Indochina.
In 2010, we increased our investment exposure to Latin America.
In partnership with Impulsora Mexicana de Desarrollos Inmobiliarios in Mexico, Temasek committed over S$100 million to pursue land banking opportunities, with our first joint investment in Supra Terra.
In Brazil, we invested an initial S$500 million in Odebrecht Oil & Gas, an upstream services provider for the oil industry.
In Singapore, we invested over S$100 million in the first container port business trust listed on the Singapore Exchange, Hutchison Port Holdings Trust. In addition, we invested more than S$200 million in ACR Capital, a pan-Asia reinsurer.
In December 2010, we committed to manage and participate in the Co-Investment Programme for Singapore-based companies. The programme aims to provide growth capital for small and medium-sized enterprises in partnership with co-investors.
We stepped up our exposure to the energy and resources sector. We invested S$200 million in Platmin, a Canadian-listed platinum producer with assets in South Africa, and S$700 million in Chesapeake Energy Corporation, the second-largest producer of natural gas in the USA.
Our investment in Chesapeake led to an opportunity for us to partner RRJ Capital in anchoring a consortium that purchased a 70% stake in Frac Tech, a US-based company providing well stimulation services. We completed this investment in May 2011.
Developments in technology will shape the upcoming decade. We invested S$50 million in Tudou, a well-known Chinese online video site, as well as S$50 million in Alibaba Group, the leading e-commerce company in China.
Key divestments included Fraser and Neave, Hana Financial Group and Fortescue Metals Group.
Investment Outlook
Economic recovery from the global financial crisis is patchy and structural risks remain. We see medium term risks of rising inflation. Other risks include the sovereign debt crises in Europe and the USA, a slowdown in the growth markets and the Middle East unrest.
Over the next decade however, we remain optimistic about opportunities in Asia and the growth markets, driven by education, healthcare, urbanisation and other needs of growing middle income populations. Demand for commodities will remain strong, while developments in technology offer new opportunities and potential solutions to the multi-faceted challenges of today.
We see medium term risks of rising inflation.
Other risks include the debt crises in Europe and the USA.
We remain optimistic about Asia and the growth markets.