SWF Weekly News Roundup: CIC and KIC Eye Deals in Italy
SWF Weekly News Roundup: ADIA and GIC to Team Up on Center Parcs Bid
SWF Weekly News Roundup: Temasek to Make New Investments in Europe and India
Far East sovereign wealth funds embarked on a trip to
Italy this week. The
China Investment Corp. (CIC) is reportedly in talks to
become a limited partner in funds managed by
Italy’s largest infrastructure investment firm,
Milan-based F2i, whose founding members include state-owned
lender Cassa Depositi e Prestiti. This would be the latest in a
series of
big European infrastructure deals involving sovereign
wealth funds.
The Italian government has long been courting
direct investment from China. In October 2014, CIC signed a
€1 billion ($1.3 billion) co-investment agreement with
Fondo Strategico Italiano (FSI), Italy's state development
fund, following a state visit by Chinese Premier Li
Keqiang.
FSI has previously signed co-investment agreements
with the
Kuwait Investment Authority and the
Qatar Investment Authority — and now looks set to
sign a similar deal with the
Korea Investment Corp. (KIC). News emerged this week that
KIC and FSI are negotiating a €1 billion ($1 billion)
joint venture that will see them finance small- and
medium-sized companies Italian companies in the industrial
sector.
Center Parcs Bid
The
Abu Dhabi Investment Authority (ADIA) and
Singapore’s
GIC are reportedly teaming up with a private equity firm to
bid £2.5 billion ($3.7 billion) for Center Parcs, a chain
of U.K. holiday resorts. The sovereign wealth funds are
believed to be bidding for both the real estate and the
eponymous operating company.
ADIA and GIC have developed a close relationship
in recent months and are reportedly collaborating on
two other deals: a $3 billion bid for Netherlands-based
car-leasing company LeasePlan Corp. and a $7 billion offer for
a Swedish electricity distribution business owned by
Helsinki-based energy company Fortum Group.
NZ Super Continues to Grow
The
New Zealand Superannuation Fund published its latest
monthly performance figures this week. The fund returned 3.91
percent over February 2015, bringing its overall assets to
$28.98 billion. NZ Super’s CIO Matt Whineray
spoke exclusively to the Sovereign Wealth Center this week
about the fund’s investment strategy for the
months ahead.
Temasek Eyes Deals in Europe and India
Singapore’s
Temasek Holdings is reportedly set to form a consortium
with Beijing-based investment firm GSR Ventures and Chinese
light-emitting diode (LED) producer Lattice Power to bid for
Philips Lumileds, a €2.5 billion ($2.5 billion) lighting
components business put up for sale by Amsterdam–based
industrial giant Philips. The consortium put in a surprise
last-minute bid for the company to rival private equity firms
CVC Partners and KKR & Co. — which have submitted
a joint offer — and Bain Capital.
Temasek is also continuing its strategy of
investing in India. The firm is reportedly in talks to commit
$80 million to Bangalore-based Capillary Technologies, a
cloud-based software solutions provider. Temasek has been
ramping up its investments in India since the first half of
2014 as its seeks to profit from the growth of the
country’s affluent middle class.