Dec 1, 2008
Temasek to sell S'pore Food
SINGAPORE Food Industries said on Monday its majority shareholder, Temasek Holdings , is in talks to sell its stake in the firm.
Temasek owns 69.7 per cent of the food manufacturing firm.
There is 'no assurance that any transaction will materialise from the discussions' between Ambrosia Investments Pte and the potential acquirer, Singapore Food said in a statement to the local stock exchange.
Ambrosia is a unit of Temasek, the Singapore state-owned investment company that owns almost 70 per cent of Singapore Food, according to data tracked by Bloomberg. SFI is valued at S$467.2 million, based on the stock's last traded price.
Singapore Food jumped 7.1 per cent to 90.5 cents on Nov 28. The stock has rallied 13 per cent since Temasek said on Oct 23 it is 'exploring options' on its stake in the company.
I was looking at Singapore Food not long ago. It seems to me that it is a pretty stable business, somewhat like Singpost. The type of business is rather recession-proof. If I remembered correctly, the only glaring thing was that one of the companies that it acquired in the UK region has been making losses for the past few years. Besides that, the liquidity of the counter seems quite low although it is not really an issue.
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