SFI – BT

Ambrosia Investments mulls SFI stake sale

The subsidiary of Temasek-linked ST is evaluating options

Ambrosia Investments, a wholly owned subsidiary of Temasek-linked Singapore Technologies, is evaluating options regarding its stake in Singapore Food Industries Limited (SFI).

Ambrosia Investments holds a 69.68 per cent stake in SFI, making it the company’s majority shareholder.

SFI chief Roger Yeo told BT that he was not sure if Temasek was looking to sell off its stake. However, referring to comments by Temasek in a Bloomberg report yesterday, he said that it seemed Temasek was ‘thinking of a sale’.

In the report, Bloomberg quoted Temasek’s managing director of investments, David Heng, as saying that Temasek was exploring its options ‘with the aim of unlocking shareholder value and optimising returns’. No decision on the stake has been made, Mr Heng added.

‘The Board would like to caution that there is no assurance that any transaction will materialise arising from the evaluation. Further announcements will be released if and when appropriate,’ SFI said in an announcement yesterday. It also advised shareholders and investors to exercise caution in their dealings in the company’s shares.

The statement was in response to a query dated Oct 22 by the Singapore Exchange, as there had been a substantial increase in share price on that day. On Wednesday, its share price hit a high of 82 cents from an opening price of 74.5 cents, before closing at 80 cents. SFI closed at 82 cents yesterday, up two cents.

In the statement, SFI also pointed to an MOU signed by its subsidiary, SFI Manufacturing Pte Ltd, on Wednesday with the Jilin City government as a plausible reason for the spike in trading activity.

Under the agreement, SFI Manufacturing will collaborate with the Jilin City government to build an industrial scale pig farm and processing plant.

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