Temasek loses 74% of Pakistani investment

In Temasek on 20/07/2011 at 5:22 pm

“According to estimates by Pakistan’s Invisor Securities, Temasek has invested about US$540 million (S$657 million) in NIB and is sitting on a paper loss of about US$400 million.”

This quote appeared as the last sentence of a Reuters article carried by our nation building, constructive Today. The article was abt Francis Rozario resigning as CEO of Temasek’s Fullerton unit, the unit that invests in Asian banks.

Coming back to the loss, this means NIB is worth only US$140m, and that Temasek has an unrealised loss of 74%.

Update at 6.15pm on 20th July 2011: ST has the same story. And the above quote too appeared as the last sentence. Some people were careless in editing the story for us “daft” S’poreans. Interestingly, BT doesn’t report the resignation.

  1. BT kenna tekaned after the DBSS story. So their editors now damn anal.

  2. What about accountability from the Board which must have approved such a big ticket investment? Now we know why Tumasick had to sell the stakes in the Chinese banks…the
    slim profits were required to shore up the P/L.

  3. The second last sentence of reuters article is
    ” Fullerton’s success included its early investment in CCB and Bank of China, whose share prices have soared since their Hong Kong IPOs, but it has suffered major setbacks such as its investment in Pakistan’s NIB Bank.”

    Thus fullerton make some money in some investment and lost money in other investment. As an investor, u should know that it is not the profit or loss in a single investment that is important but the overall profit or loss in a portfolio basis.

    Please publish your investments over the last 7 years . We want to check whether u have any investment that has a 74% loss.

    • You get Temasek to publish details of their trades, and I will publish mine.

      And in my case, it’s my own money. Temasek is investing our money.

  4. ok. Publishing is too complicated. u just need to declare in this website to your GOD that in the last 7 years, u do not have any investment that lose more than 50% of its value. If u lie, may u be inflicted by a terrible illness.

    • I do it if you can get Temasek to say same thing. Remember that the book loss was never ever disclosed by Temasek, A Paki broker broke the news.

      And those of us who have people managing our money NEVER expect our fund mgrs to hold onto a losing position that becomes so big.

  5. Francis Rozario also made 20 to 30bn in realized gains for temasek since he joined the company. The paper loss in Pakistan is line with banks that follow similar models in the region. People thought he was wrong with introducing his model when he joined Danamon. In 2 years after joining Danamon he was named the best bank CEO in Asia. The model is one that takes time and effort to be successful and if temasek were to stick it out, they would make billions just like Rozario has made billions for them in all his other investments. Don’t think so short term.

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