Temasek is willing to give Standard Chartered time to work on its turnaround before deciding on the fate of its underperforming $4bn stake in the UK bank as part of a portfolio reshuffle, people familiar with the matter said.
Reuters reports that pressured by weak returns from low interest rates and a commodities rout, the Singapore state investor is taking a hard look at its $190bn portfolio and may exit unprofitable assets, these people told Reuters.
This approach was evident last week when Temasek sold at below book value a controlling stake in shipping firm Neptune Orient Lines, its biggest disposal since 2009.
Standard Chartered, in which Temasek is the biggest shareholder with an 18% stake, has launched a painful restructuring under new CEO Bill Winters after being hit by bad loans in emerging markets and suffering a 70% tumble in its shares over the past two-and-a-half years.
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