Tag Archives: Temasek

Olam, Temasek and a huge pile of debt

Temasek’s offer to buy out Olam in a S$2.53 billion deal comes as the commodity trader continues to pile on debt. While Olam’s politically well-connected management and shareholders may appreciate the sovereign wealth fund’s backing, this is a deal which ticks all the wrong boxes for Singapore.

Olam’s management have been fending off critics of their financials and accounting for years. While Carson Block’s very public decision to short the stock in 2012 was widely reported, less well-known is the fact that top Asian equity house CLSA incurred the commodity trader’s wrath the year before over a research note that raised some of the same concerns. And while the public response from Olam has always been defiant, privately management have admitted defeat – tearing up a flagship six-year plan to generate US$1 billion in profits by 2016 and slashing the debt fuelled growth that Block saw as unsustainable.

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Singapore to become global retail refurbishment hub by 2025.

Singapore today unveiled plans to become a world leading global hub in retail premises demolition, refurbishment and re-construction by 2025. Speaking from a hastily erected podium littered with rubble at iconic shopping destination Orchard Road, the Minister for National Redevelopment launched the strategic roadmap to much fan-fare.

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