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Temasek acquires stake in A.S. Watson

21 March 2014

Singapore, 21 March 2014 Singapore investment company Temasek has agreed to invest US$5.7 billion (S$7.2 billion at today’s exchange rate) for a 24.95% equity stake in A.S. Watson.  The completion of this investment is subject to customary closing conditions.

With this investment, Temasek has increased its exposure to the consumer retail sector, with a balanced focus on a growing Asia and a recovering Europe.

A.S. Watson is the largest international health and beauty retailer with over 10,500 stores operating 14 retail brands in 25 markets worldwide.

Its flagship brand Watsons operates over 4,000 stores and more than 900 pharmacies, including those in 9 Asian markets, namely China, Hong Kong, Taiwan, Macau, Singapore, Thailand, Malaysia, the Philippines and Indonesia.

Mr Chia Song Hwee, Head of Investment Group in Temasek said, “We are very pleased with the opportunity to be a long term partner with Hutchison Whampoa Limited through our investment in A.S. Watson.  We share their philosophy to invest and build businesses for the long term, especially in Asia.  A.S. Watson is a well-established company with a proven management team, a valuable franchise and a good growth story.  The consumer retail sector is a good proxy to growing middle income populations and transforming economies.  This is very much part of our investment themes as we shape Temasek’s portfolio for the long term.”

“We continue to believe in the growth opportunities and long term prospects of Asia, particularly China, and a recovering Europe,” added Mr Chia, who is also Temasek’s Co-Head for China.

 

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More about Temasek

Incorporated in 1974, Temasek is an investment company based in Singapore. Supported by 11 offices globally, Temasek owns a S$215 billion portfolio as at 31 March 2013, with 71% of its underlying assets in Asia (including Singapore), and 25% in the mature economies of North America, Europe, Australia & New Zealand.

Temasek's investment themes centre on:

  • Transforming Economies
  • Growing Middle Income Populations
  • Deepening Comparative Advantages
  • Emerging Champions

Temasek’s portfolio covers a broad spectrum of industries: financial services; transportation, logistics and industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources.

Total shareholder return since inception in 1974 has been 16% compounded annually.

The company has had a corporate credit rating of AAA/Aaa since its inaugural credit rating in 2004, by rating agencies Standard & Poor's and Moody's respectively.

 

For more information on Temasek, please visit www.temasek.com.sg

For the latest Temasek Review 2013, please visit www.temasekreview.com.sg

 

 

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Temasek Review 2014

Our journey has just begun: 
Temasek ends active year with a S$223 billion portfolio, closing with a net cash position.

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