Deals
Temasek Unit’s Offer for Olam Is Credit Negative, Moody’s Says
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The offer by Temasek Holdings Pte’s unit to take over Olam International Ltd. is credit negative for the Singapore state-owned investment company, according to Moody’s Investors Service.
The acquisition, which values one of the world’s top three coffee and rice traders at S$5.3 billion ($4.2 billion), will put pressure on Temasek’s “portfolio liquidity,” Moody’s, which rates the investment firm at Aaa, said in a March 17 report. Olam’s 2 percent dividend yield in 2013 is also lower than Temasek’s return of about 3 percent, it said.