Temasek, a state-controlled Singaporean bank has acquired 3.9 percent stake worth $4.8 billion in BlackRock, a US-based investment management company, media reports said.
It is reported that Temasek is one of the companies which acquired the American company’s shares when PNC Financial Services, a US-based bank holding company floated stake worth $14 billion earlier this year. In the second quarter, Temasek added 5.95 million shares under its belt.
The investment will put the Singaporean bank among the top five largest holders in BlackRock. Both Temasek and PNC Financial Services have also partnered in the past and expect to launch a joint venture in China.
The share price of BlackRock has surged by 8.4 percent since June and this week the closing price was $589.56. Furthermore, the new investment by Temasek also includes dividends. In July, Temasek recorded its worst performance since 2016 due to the outbreak of Covid-19 pandemic which have jeopardised major economies across the world. As of March, the company’s preliminary portfolio value is $306 billion.
It is reported that Temasek sold its 12.1 million Alibaba shares worth $2.6 billion between March and August. The company acquired shares from two Chinese companies such as China Biologic Products and BeiGene.
BlackRock is currently the world’s largest asset management company as it recorded assets worth 7.4 trillion at the end of 2019. The company intends to inject 500 million in coal mining as fresh investments.
The move by Temasek highlights its appetite for growth despite the Covid-19 pandemic which has shut down many businesses across the world.