CapitaLand

Temasek has sold 200 million shares in CapitaLand at $2.90 per share. The share is mainly sold as a placement to investor. Temasek is selling around 7.5% stake in CapitaLand and after this sale, Temasek holding still has around 44.5% stake in CapitaLand after this sale. This amount is around 4% discount to the closing price of $3.02 at Friday.

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Comments: This is the second sale done by Temasek holding. The first was SMRT. Before this sale, I was thinking that Temasek will be doing a placement share on Singtel but they decided to do a placement on SMRT and CapitaLand. Nevertheless, this should have a some minimum impact (limited movement in share price) on other Temasek Linked Companies (TLC) share price these few weeks as investors do not know whether Temasek will be doing another round of sale on other TLCs. This is due to the fact that Temasek has history placing the placement price lower then the current market price to generate interest for their placement exercise. Sometime, I am wondering why must they do it this way. So unfair to the investor that hold the share. If those private investor feel that the company is worthwhile investing then they should pay a slight premium instead of getting discount. So unfair to small time investor. If Raffles holding can sell their asset at a premium, why can't Temesak sell their share at a premium too? The only case that I can think that company are selling their company share at a discount is when they need fresh fund or they are facing problem, which is normally not the case for TLC. This comment is my personnel view on this share and I do not have any vest interest in this counter.


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