Temasek lost almost US$2 billion of a badly-timed US$3 billion in Shin Corp at a peak of 49.25 baht(Shin shares are now trading at around 15 baht) in 2006.
This state-linked investment company committed S$401 million in ASX -listed ABC Learning Centres at near the peak price of A$7.30 and then averaged down at between A$1.20 and A$4.00, bringing its commitment to over S$500 million. That investment is now essentially worthless although Temasek has yet to write it down.
The company also bought 19% of LSE- listed Standard Chartered in 2006 only to see the market value of that stake melt 55% by November 21st.
More fiascos include a 975 million pound stake in Barclays Bank bought at the peak of 740 pence(with a further 100 million to subscribe for a rights issue at 282 pence), which have now sunk over 70% at 138 pence.
Most heinous of all is its US$6.88 billion stake in Citigroup bought with a minimum conversion price of $31.34. Citigroup has since plunged 88% to $3.71, singlehandedly delivering S$9.11 billion of red ink to Temasek’s books.
Overall, the paper loss on these bank investments has exceeded S$35 billion as of October 21st.
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