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11-07-2023, 10:37 PM
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Temasek seeks talks with Ant on buyback valuation
Published Tue, Jul 11, 2023 · 9:45 pm
Temasek is among holders of Ant’s private shares, and each investor would be allowed to sell up to 7.6 per cent of their equity rather than cashing out completely. PHOTO: BLOOMBERG
Temasek
TEMASEK Holdings is set to hold talks with Ant Group to understand why it slashed its valuation before it decides whether to take part in a planned share buyback, according to chief investment officer Rohit Sipahimalani.
Temasek bought shares in the Alibaba Group Holding -affiliated finance company in 2018, when it was valued at US$150 billion, according to an Ant prospectus in 2020. Ant’s planned repurchase of stock announced on the weekend would value the company at about 567.1 billion yuan (S$105.6 billion).
“With the recent developments around Ant, a line in the sand has been drawn and that should be good for the company,” Sipahimalani said in an interview, adding Ant was holding talks with all major holders. “Investors have to make their own call whether they need the liquidity or where they see the outlook for the business.”
Alibaba had earlier said it was considering participating in a proposed Ant buyback. The fintech giant plans to repurchase as much as 7.6 per cent of its shares after being ensnared by a years-long regulatory crackdown that culminated last week with a fine of almost US$1 billion from Chinese regulators. The buyback valuation is almost 70 per cent lower than an estimated US$280 billion market capitalisation in 2020 before it scrapped an initial public offering.
Temasek is among holders of Ant’s private shares. Each investor would be allowed to sell up to 7.6 per cent of their equity rather than cashing out completely, Bloomberg News has reported.
Global investors are trying to decide whether the political and consumer challenges facing companies in China are a buying opportunity or substantial risk to their portfolio. About 22 per cent of the Singaporean firm’s net portfolio value is based in China, making it a key concern
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Temasek seeks talks with Ant on buyback valuation
Published Tue, Jul 11, 2023 · 9:45 pm
Temasek is among holders of Ant’s private shares, and each investor would be allowed to sell up to 7.6 per cent of their equity rather than cashing out completely. PHOTO: BLOOMBERG
Temasek
TEMASEK Holdings is set to hold talks with Ant Group to understand why it slashed its valuation before it decides whether to take part in a planned share buyback, according to chief investment officer Rohit Sipahimalani.
Temasek bought shares in the Alibaba Group Holding -affiliated finance company in 2018, when it was valued at US$150 billion, according to an Ant prospectus in 2020. Ant’s planned repurchase of stock announced on the weekend would value the company at about 567.1 billion yuan (S$105.6 billion).
“With the recent developments around Ant, a line in the sand has been drawn and that should be good for the company,” Sipahimalani said in an interview, adding Ant was holding talks with all major holders. “Investors have to make their own call whether they need the liquidity or where they see the outlook for the business.”
Alibaba had earlier said it was considering participating in a proposed Ant buyback. The fintech giant plans to repurchase as much as 7.6 per cent of its shares after being ensnared by a years-long regulatory crackdown that culminated last week with a fine of almost US$1 billion from Chinese regulators. The buyback valuation is almost 70 per cent lower than an estimated US$280 billion market capitalisation in 2020 before it scrapped an initial public offering.
Temasek is among holders of Ant’s private shares. Each investor would be allowed to sell up to 7.6 per cent of their equity rather than cashing out completely, Bloomberg News has reported.
Global investors are trying to decide whether the political and consumer challenges facing companies in China are a buying opportunity or substantial risk to their portfolio. About 22 per cent of the Singaporean firm’s net portfolio value is based in China, making it a key concern
