Fed up with mounting losses at its only major investment in Pakistan, the Singapore-based Temasek Holdings is selling off its stake in NIB Bank and is reportedly in talks with the Industrial and Commercial Bank of China, sources told The Express Tribune.
Senior management officials at NIB Bank were so tight-lipped about the transaction that, not only did they refuse to discuss the matter, but they even refused to go on the record as having said that they have no comment. Neither the ICBC not Temasek Holdings were available for comment, despite repeated attempts to contact them by The Express Tribune….
Temasek certainly has reason to be unhappy. The Singaporean state-owned institutional investor has ploughed about $540 million into NIB Bank and has thus far seen the bank make close to $400 million in losses. At the close of trading on Wednesday, NIB Bank had a total market capitalisation of approximately $154 million, which values Temasek’s 74% holding (through its subsidiary Bugis Investments) at $114 million….
The above are the starting paragraph of an article titled, ‘Cut your losses: Temasek may be selling off NIB to China Bank’ by Farooq Tirmizi in The Express Tribune.
I could sense a little sarcasm and sneering by the author that Temasek is making such a huge loss. But smug not, for Farooq did not know how big is Temasek’s portfolio and this loss is just a pittance compared to all the big gains it is making elsewhere. I bet in the next annual report Temasek will announced another scintillating result with profits in hundreds of millions, after minus this small loss. For every loss of a few hundred millions, it will be covered by gains of many hundred millions. That is how good the track record of Temasek.
Our reserves are in good hands with the best money can buy managing them.