Singapore’s Temasek Holds 1% Alibaba Stake, Adds McDonald’s

Temasek Holdings Pte has amassed a 1.03 percent stake in Alibaba Group Holding Ltd. after the Internet company’s September public share sale, as it seeks to benefit from rising consumption in Asia’s biggest company.

Singapore’s state-owned investment firm, directly or through its units, owned 25.5 million American depositary receipts in the Chinese company valued at $2.26 billion, as of Sept. 30, according to a filing today with the U.S. Securities and Exchange Commission, making it the largest listed shareholder with 1.03 percent. Alibaba rose 0.1 percent to $114.95 at 12:39 p.m. in New York and has surged about 68 percent since its Sept. 19 debut.

“They made a decent gain with their Alibaba investment,” said Enrico Soddu, an analyst at Institutional Investor’s Sovereign Wealth Center in London. “I expect them to hold on to that investment as it helps them outweigh their holdings of Chinese lenders and fits their strategy of investing in countries with a growing middle class and companies with a strong comparative advantage.”

Prior Investment

Temasek is the ninth-biggest state investor with an estimated $177 billion of assets, according to the website of Institutional Investor’s Sovereign Wealth Center. The investment firm has stakes in Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and Bank of China Ltd. valued at $20 billion, Bloomberg data show.

Temasek had invested S$50 million ($39 million) in Alibaba in its fiscal year ended March 2011, it said in that year’s annual report. It was one of the investors that agreed to buy as much as $1.6 billion stock from Alibaba employees, people familiar with the matter said in September 2011.

Singapore’s investment firm was also among buyers when Alibaba repurchased shares from Yahoo! Inc. in 2012 through transactions valued at $7.6 billion and sold them partly to existing shareholders.

Temasek didn’t disclose the amount of its holdings in Alibaba’s China registered shares.

New Stakes

The investment firm also bought 10.9 million shares in U.S. consumer lender Synchrony Financial, which had its initial public offering in July, and bought a stake in McDonald’s Corp. through one of its units, according to today’s filing.

Temasek also purchased 2.5 million shares in U.S. firm Cognizant Technology Solutions Corp., one of the largest providers of outsourcing services.

“Our section 13F filing is part of our normal process of filing with the US SEC for our market holdings in the US, as well as those of our subsidiaries, even those that are independently managed and operated,” Stephen Forshaw, a spokesman for Temasek, said in an e-mailed statement. “A number of companies in the filing are not U.S. companies, but they are included because their shares are traded in the U.S.”

Money managers who oversee more than $100 million in equities must file a Form 13F with the SEC within 45 days of each quarter’s end to show their U.S.-listed stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.

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