Temasek, CIC Said to Invest in GTI Trust’s Singapore IPO
Temasek Holdings Pte and China Investment Corp. agreed to invest in Global Telecommunications Infrastructure Trust’s initial public offering in Singapore, said three people with knowledge of the matter.
GTI Trust (GTI), the undersea cable unit of Reliance Communications Ltd. (RCOM), is selling $250 million to $300 million of stock to four sovereign wealth funds as part of the IPO, said two of the people, who asked not to be identified as the details are private. It wasn’t immediately clear how much Temasek or CIC invested.
Companies have relied on large investors, including sovereign wealth funds, for IPO fundraising in Asia as volatile stock markets made offers more difficult to complete. IPOs in Singapore have raised just $824 million this year, compared with almost $7 billion in the first half of 2011, data compiled by Bloomberg show.
GTI Trust will probably price the units at the low end of a marketed range, and offer investors a yield of 11.5 percent, two of the people said. That’s a higher payout than other business trusts listed in Singapore such as Li Ka-shing’s Hutchison Port Holdings Trust. (HPHT)
Stephen Forshaw, a spokesman for Temasek, declined to comment. A phone call to CIC’s Beijing-based media office went unanswered.
GTI Trust owns four subsea cable systems that carry Internet traffic and data around the globe, according to a prospectus filed in Singapore on July 5. Reliance, controlled by Indian billionaire Anil Ambani, is attempting to sell assets to reduce net debt that stood at 358 billion rupees ($6.5 billion) at the end of March.
Deutsche Bank AG, DBS Group Holdings Ltd., Industrial & Commercial Bank of China (601398) Ltd. and Standard Chartered Plc are arranging the offering.
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