Temasek makes shift to commodities

SINGAPORE: Temasek Holdings Pte, Singapore's state-owned investment company, agreed to buy a stake in Olam International Ltd, its first foray into commodities since naming Charles "Chip" Goodyear as chief executive officer-designate in February.

Breedens Investments Pte and Aranda Investments Pte, two Temasek subsidiaries, will pay S$437.5 million ($303 million) for 273.5 million new shares, or 13.76 percent, in Olam at S$1.60 apiece, the Singapore-based agricultural commodities supplier said in a statement. The price is 18 percent lower than the May 29 closing price of S$1.94.

Temasek is shifting to commodity investments after the global recession led to losses in financial assets. The fund sold at a loss that may total $4.6 billion its 3.8 percent stake in Bank of America Corp in the first quarter.