Weekly Digest: GIC in talks to invest in Midea's HK IPO; Khazanah optimistic on 2024 report card
TOP NEWS OF THE WEEK
GIC and alternative asset manager Hillhouse Investment are considering investing in appliance maker Midea Group’s Hong Kong listing, according to people familiar with the matter.
Hillhouse is in talks to place an order for more than $1 billion in stock, while GIC is weighing subscribing for about $500 million in the offering, according to sources.
Source: Bloomberg
Malaysian sovereign wealth fund Khazanah Nasional expects its investment portfolio in 2024 to surpass last year's time-weighted rate of return of 5.7%, helped by strong performances from assets in Malaysia, the US and the European Union.
"We are looking good in terms of the numbers," Chief Investment Officer Hisham Hamdan said.
"We are now in September. We have another three to four months to go. We are going to do better than 5.7%."
Source: Nikkei
Temasek Holdings is nearing a deal to buy a significant minority stake in VFS Global, according to people familiar with the matter, a transaction that could value the visa outsourcing and technology services firm at about $7 billion including debt.
Temasek is poised to acquire about 20% in closely held VFS, which is controlled by US alternative asset manager Blackstone.
Source: Bloomberg
OTHER INVESTMENT NEWS
AUSTRALIA
A Nasdaq-listed special purpose acquisition company (SPAC), Agriculture & Natural Solutions Acquisition Corporation (ANSC), has announced plans to acquire the Australian Food & Agriculture Company (AFA) for A$780 million ($524.5 million).
AFA, primarily owned by the Bell family and Alastair Provan, boasts extensive agricultural assets in New South Wales, including 87,000 acres of cropland and significant water entitlements.
The deal will result in a new entity, Agriculture & Natural Solutions (NewCo), set to list on the New York Stock Exchange.
This acquisition highlights the growing international interest in Australian agriculture, with ANSC's leadership emphasising Australia's role in decarbonising agriculture and the potential for global impact in regenerative farming practices.
Source: Financial Standard
CHINA
China tightened regulations for the insurance industry to strengthen risk management and the development of patient capital, boosting investment in new technology sectors.
The State Council on September 11 issued a 10-point document outlining comprehensive regulations for the insurance industry.
It said the government will support qualified enterprises to participate in the reform of insurance companies as well as eligible foreign insurance institutions to set up legal entities and branches in China.
Source: State Council
China will raise its retirement age for workers from January 1, 2025, the central government announced.
For men, the retirement age will be raised to 63 years old, up from the current threshold of 60.
For women in management positions, it will be raised from 55 to 58. For women in non-management roles, it will be increased from 50 to 55. The changes will come into force over a 15-year period.
The minimum payment period for the national pension has also been adjusted accordingly, which will gradually increase from the current 15 years to 20 years from 2030.
Source: Chinese government
JAPAN
GIC divested its hotel property in Fukuoka, Japan, it confirmed on September 11.
The property, Hilton Fukuoka Sea Hawk hotel, was sold to Mizuho Leasing Company, which signed the purchase agreement in July. The deal closed in late August.
Source: Business Times
KOREA
Korea Investment Corporation (KIC) is looking to hire a domestic or foreign financial institution to provide middle-office investment services for its $181 billion investment portfolio.
The institution will be responsible for offering transaction management services, KIC said in a request for proposal on September 2.
Source: KIC; Asia Asset Management
The Korea Federation of SMEs or KBIZ is inviting bids for a 110 billion won ($83 million) domestic venture capital mandate -- its third outsourced investment this year.
KBIZ will hire up to nine asset managers for the investment, the industry group for small and medium enterprises says in a request for proposal on September 4.
Source: Asia Asset Management
MALAYSIA
Kumpulan Wang Persaraan (KWAP), Malaysia's civil service pension fund managing $41.22 billion in assets, has made its second investment in local startups this month.
The fund participated in a RM250 million ($57.7 million) fundraising for ZUS Coffee, alongside Singapore's KV Asia Capital and Indonesia's Kapal Api Group.
These investments align with KWAP's goal to inject up to 500 million ringgit into Malaysia's venture ecosystem by 2025 through its Dana Perintis fund, showcasing the pension fund's commitment to supporting homegrown businesses.
Source: TheStar; Asia Asset Management
TAIWAN
DBS Group Holdings is considering forming insurance partnerships in India and Taiwan to expand its services in the region, according to people familiar with the matter.
The Singapore-based lender is working with Goldman Sachs Group as an adviser on potential bancassurance agreements for those markets, the people said, asking not to be identified because the deliberations are private.
Source: Bloomberg
THE PHILIPPINES
State-run pension fund Government Service Insurance System (GSIS) is investigating a data breach in its system involving the administrator account of one of its computers.
In a statement, the GSIS said the affected computer has been taken offline as it actively investigates the incident to assess the extent of the breach.
Source: Philstar