Temasek buy not to impact StanChart India

Temasek's acquisition of a 12 per cent stake in UK-based Standard Chartered PLC is unlikely to have any impact on the bank's Indian operations.

Standard Chartered Bank's general manager-south Asia, Jaspal Bindra today said: "There is absolutely no modification anticipated in our Indian operations, following this acquisition. It is only a change in the shareholding pattern and is unlikely to translate into any further domestic developments."

According to a press statement issued by the bank, the Tan Sri Khoo Teck Puat Estate has entered into an agreement to either sell or procure the sale of 152.4 million ordinary shares in Standard Chartered PLC to Dover Investments, a wholly owned subsidiary of Temasek.

This represents approximately 11.55 per cent of Standard Chartered's ordinary share capital. However, in addition to this stake, Temasek holds roughly 0.07 per cent of the ordinary shares of Standard Chartered.

Temasek's senior managing director for investments, Gan Chee Yen explained, "Asia is at an inflexion point, poised to open its markets and create opportunities for more than half of mankind. Standard Chartered is well-positioned to capture this growth."

He further added that investing in Stanchart is consistent with Temasek's strategy of investing in Asia's financial services sector and it is an important part of its ongoing efforts of achieving a balanced portfolio.

The move to acquire an 11.55-per-cent stake in Stanchart, amounting to 152.4 million shares, has made Temasek the largest single shareholder in a globally known financial institution.