Two years of speculation that Standard Chartered would be acquired by Citigroup or JP Morgan came to an abrupt end yesterday with news that Temasek Holdings, the investment arm of the Singapore government, had paid an estimated GBP 2.3 billion for an 11.5% stake in the Asian bank.
154.2 million shares were acquired from the estate of the deceased Malaysian tycoon Tan Sri Khoo Teck Puat, who rescued Standard Chartered from an earlier hostile bid from Lloyds Bank in the mid-1980s by acquiring. Like Khoo, Temasek says it intends to be a supportive and stable investor.
The Standard Chartered share price fell slightly after news of the deal was announced, though Temasek did not rule out a bid for the rest of the bank, and has played a part in bids for other companies. Interestingly, Temasek also has stakes in Bank of China and China Construction Bank.