Temasek Holdings Invests in Barclays PLC
23 July 2007
Temasek Holdings ("Temasek") confirmed today that it is investing £975 million (approximately S$3 billion) in Barclays PLC ("Barclays") via its newly issued shares at a price of £7.20 per share, representing 2.1 per cent of Barclays' existing issued share capital. Temasek will subscribe to a further £1.5 billion (S$4.5 billion) in Barclays' shares at a price of £7.40 per share, conditional on the completion of the Barclays-ABN Amro merger. £0.5 billion of this subscription amount will be made available to Barclays' existing shareholders through a clawback at the same price. If the clawback is not exercised, Temasek will own 2.9 per cent of the combined entity.
Temasek will also receive a warrant to subscribe for approximately 61 million Barclays ordinary shares with an exercise price of £7.80 per share. The warrant is exercisable within two years from the completion of the conditional subscription.
Senior Managing Director of Temasek, Frank Tang said, "We are pleased to have this opportunity to invest in Barclays. We look forward to supporting them in their strategy to create opportunities for a higher level of sustainable growth. This investment fits well with our interest for long-term exposure to strong players in the financial services sector."
Executive Director Simon Israel added: "Barclays is a very well-managed bank. We are very impressed with its board and management, specifically their strategy, track record and focus on value creation for shareholders. We believe the Barclays' board and management understand what it takes to make the Barclays-ABN Amro merger work and deliver value."
About Temasek Holdings
Temasek Holdings is an investment house, anchored in Asia and headquartered in Singapore.
Its portfolio spans various industries including telecommunications & media, financial services, real estate, transportation & logistics, energy & resources, infrastructure, engineering & technology, consumer & lifestyle as well as bioscience & healthcare. As at end March 2006, the net value of its portfolio is about S$129 billion (US$80 billion), concentrated principally in Singapore, Asia and the OECD economies.
Temasek's total shareholder return since inception in 1974 has been 18% compounded annually. It has a corporate credit rating of AAA/Aaa by rating agencies Standard & Poor's and Moody's respectively.
For further information on Temasek please visit www.temasekholdings.com.sg.
Lim Siow Joo
Associate Director, Corporate Affairs
Tel: (65) 6828 6503
Senior Vice President
Weber Shandwick (for Temasek Holdings)
Tel: (65) 6825 8027