Singapore's Temasek Pares Stake in Alibaba Group

Temasek Holdings, the Singapore state-owned investment company last week reportedly reduced its stake in China's e-commerce giant, Alibaba Group Holding, by selling 14.5 million American depositary receipts (ADRs) in the third quarter.

Alibaba remains important holding in Temasek's portfolio.
Alibaba remains important holding in Temasek's portfolio.

According to a filing with the U.S. Securities and Exchange Commission, it left Temasek with a stake of 39.6 million at the end of September valued at US$4.2 billion. The investment company had added 6.5 million ADRs in Alibaba in the June quarter, according to an earlier filing.
"The change reflects the reporting of normal portfolio rebalancing we undertake from time to time, and are mainly related to more liquid stocks, holdings of which may vary with market movements," Temasek spokesman Stephen Forshaw said.
“We remain significantly invested in Alibaba as an important holding in our portfolio.”

From customer to shareholder
The news of the paring of Temasek's stake in Alibaba, follows an earlier announcement by Singapore's postal services provider Singapore Post (SingPost) in late October that Alibaba’s S$86.2 million (US$61.9m) investment in SingPost’s logistics subsidiary Quantium Solutions International (“QSI”) had been completed, and regulatory approval for Alibaba’s second investment in SingPost obtained.
With the acquisition of the additional shares, Alibaba now owns 34% of QSI, with SingPost owning the remaining 66%. Postal industry sources last week said that, over time, they expect Alibaba to increase its stake in QSI to 25%.
Beginning as a customer of SingPost, Alibaba became a SingPost shareholder in 2014, and today, SingPost is a strategic logistics partner for Alibaba.

Nol van Fenema

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