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Straits Trading in $294m ARA deal

Strategic tie-up will let it seed and grow its property and related holdings

Published Mon, Oct 28, 2013 · 10:00 PM
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[SINGAPORE] Straits Trading Company (STC) is buying into a fund manager linked to Li Ka-shing and is also setting up a co-investment company that will eventually boast a total capital commitment of up to $950 million.

Under a two-part strategic alliance, the Singapore blue-chip firm will buy a 20.1 per cent stake in Cheung Kong-related real estate fund manager ARA Asset Management (ARA) in a $294.4 million deal that will pave the way for it to seed and grow its property and property-related holdings in the longer term.

Following the purchase, HK billionaire Mr Li's Cheung Kong Investment will hold a remaining 7.84 per cent (down from 13.87 per cent) in ARA, while its other key shareholder and current chief executive officer John Lim's stake will be reduced to 19.25 per cent (from 33.32 per cent), making STC the largest shareholder in the Singapore-listed fund.

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