Temasek May Reveal Shift To Resources Sector
Singapore wealth fund Temasek Holdings is expected to show the extent of its portfolio shift towards the resources sector and may provide clues about leadership changes when unveiling its annual report on 8 July. Temasek may also respond to speculation that Singapore funds are in talks with BP Plc to take a strategic stake in the oil major as it struggles with a devastating oil leak in the Gulf of Mexico. Temasek declined to comment on the speculation yesterday. With $172b in assets as at end-July 2009, Temasek could also reveal this month that it fared better for the year ended March 31 after assets fell 30% in the prior year as the global financial crisis struck. It has been expanding aggressively into energy, commodities and agriculture. Financials and telecoms, nevertheless, still account for the biggest share of its holdings.

Etika Buys Noodle Firms For $2.9m
Etika International Holdings has agreed to acquire two Indonesian companies, PT Sentrafood Indonusa (PTSF) and PT Sentraboga Intiselera (PTSB) for $2.9m. PTSF and PTSB are involved in the manufacture and distribution of the Salamie and Cintamie instant noodle brands. PTSF’s products are currently distributed locally in Indonesia and overseas via authorized distributors to countries such as Saudi Arabia, Malaysia and Brunei Darussalam. PTSB is the main distributor for PTSF in the Central and East Java regions. The acquisition will help Etika build its presence in Indonesia, where it bought a distribution company last September. ‘We will be able to leverage on the enlarged distribution network,’ said Etika chief executive Kamal Tan.

Significance: These acquisitions enable Etika to expand its food and beverage businesses, in particular staple foods and drinks in Indonesia. Meanwhile, PTSF and PTSB have access to land and unused factory space in Indonesia and this allows Etika to set up manufacturing facilities there in a shorter period.

Hotel Grand Central To Buy Hotel At Surfers Paradise For A$47m
Singapore-listed Hotel Grand Central has signed conditional agreements to buy an Australian hotel and its business for A$47m (S$55.1m). The price for the Courtyard by Marriott Surfers Paradise, Queensland, works out to about A$116,000 per room. The freehold four-star hotel, which has 405 rooms, is located at the corner of Surfers Paradise Boulevard and Hanlan Street, Surfers Paradise. It forms part of Centro Surfers Paradise the largest shopping centre in the district. Hotel Grand Central also owns four hotels in New Zealand and two in Singapore, at Kramat Lane in the Orchard Road area and Belilios Road in Little India.

Significance: This acquisition will expand Hotel Grand Central’s portfolio of Australian hotels to eight. This acquisition is also EPS accretive.