Temasek: Ignoring MM? III

In Uncategorized on 21/05/2010 at 5:23 am

Guess we now know why MM’s views on mining was ignored on this deal Demand is red hot for shale gas: investments in shale gas than for it. Note $ below means US$

The sovereign wealth funds of China and South Korea are set to lead a $900m investment in a leading US producer of natural gas from shale rock, becoming the latest Asia-based groups to focus on the sector.

The talks follow last week’s disclosure that Temasek, the Singapore state investment fund, and Hopu Investment Management, a Beijing-based firm, had acquired $600m of its convertible preferred stock …

CIC and KIC are each expected to acquire about $300m worth of preferred stock, with the remainder purchased by Hopu, Seatown, an affiliate of Temasek, and a Japanese industrial group. CIC and KIC could not be reached for comment.

China Investment Corporation and Korea Investment Corp are in advanced negotiations to join a consortium planning to acquire convertible preferred stock in New York-listed Chesapeake Energy, according to people familiar with the matter.

[Update on 27 May 2010

Err could be an investment fiasco in the making. Private equity firm KKR has sold an oil shale company to Shell. Shell is paying US$4.7bn. KKR bot a  substantial stake in this co  for US$350m 11 mths ago.]

BTW, MM keeps telling Japan that they need to follow S’pore’s example and allow in FTs.

Well the Japanese have a better solution: they prefer robots over bringing in FTs. Solves three problems: the lack of menial workers, the need to integrate foreigners into Japanese society, and keeps Japan at the cutting edge of innovation.

MM is the sage from Telok Blangah but maybe the wise men (lesser than sages) in Japan make up by being collectively wiser?

  1. maybe you should come to japan yourself and ask the japanese if they really want to grow old with the robots…

  2. […] mining projects. What is oil exploration except mining by another name? Temasek better watch out Possibly related posts: (automatically generated)Attacks on BP Are Excessive, British Investors […]

  3. […] Temasek: Vindication of its big bet on shale gas? In Energy, Temasek on 16/06/2010 at 5:23 am We’ve analysed that Temasek ignored MM’s warning against extractive industries (OK “mining” to be precise) when it went into shale gas […]

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