Temasek buys stake in YHI Int'l
(2004-03-03)

Temasek buys stake in YHI Int'l

THE selldown on second-liners yesterday did not spare tyre manufacturer YHI International, which fell six cents to $1.29.

But there is good news for shareholders: After the market closed, the company disclosed that it had caught the eye of Singapore investment company Temasek Holdings, which has taken a 6.16-per-cent stake in the firm.

In a statement, YHI said Temasek had bought 15 million shares from parent company YHI Holdings for $18 million or $1.20 per share.

The sale, which was managed by DBS Vickers, makes Temasek the company's third largest shareholder after YHI Holdings, which will retain a 61.82-per-cent stake, and Schroder Investment Management.

'Temasek's investment in YHI demonstrates its confidence in our company and its growth potential, especially in the fast-growing automotive sector in China,' managing director Richard Tay said.

He added that Temasek had expressed interest in the company since its listing in July last year but for reasons he would not disclose, Temasek had only now decided to take the plunge.

Mr Tow Heng Tan, Temasek's managing director of strategic development (Asean investments), said: 'This investment in YHI is in line with our interest in promising companies with good growth potential.'

As to whether Temasek would take a managing role in YHI, Mr Tay said Temasek has not made such a request but that he would welcome such a move as he believed it would contribute to YHI's expansion of its regional and international businesses.

In addition to the share sale to Temasek, YHI Holdings also sold another five million shares yesterday to the retail market in a deal underwritten by GK Goh. These were sold at a price 'much higher' than $1.20 per share though Mr Tay declined to disclose the exact price.

He said: 'Liquidity of our shares in the market is very small. About 93 per cent of our shares are held by institutional investors. If you look at the past two months, there have not been many transactions for our shares as a result.'

  
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The Straits Times

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