Temasek will purchase 152.4 million shares of Standard Chartered from Khoo TeckPuat Estate and plans to support the London-based bank "as a stable shareholder," Temasek said in a statement.
Insurance companies reasoned along the same lines.As a result of this process, the corporate sector gained a stable shareholder base, one that could usually be relied on to support fund-raisings and acquisitions.
Did they lose sight of the importance of creating long-term value by having a base of stable committed shareholders who understand the business and are focused on its long-term success?
In a nutshell, says Mathyssek, Porsche will benefit from VW's breadth of technical expertise (think Audi) while VW will benefit from Porsche as a stable majority shareholder.
When the telecoms group was privatised at the end of 1997, the treasury ministry thought it had assembled a stable core of shareholders.
"The assets have offtake agreements [to sell the generated power] and should bring a stable return for shareholders," says Ruzika, adding that "the acquisitions brought our stable credit quality to back the operation of important assets at a time when the industry and marketplace needed it the most".
It reckons that a combination would save £70m a year, at a cost of £71m over the next two years.Old Mutual, which also reported strong figures this week, argues further that a stable, cash-flush shareholder would help the Swedish insurer.
The "priority investors" received a large allocation of Royal Mail shares, with the aim of creating a stable, long-term shareholder base.
"The deal strengthens the conditions for continued satisfactory and stable dividends to our shareholders," Hakon Invest's chairman, Hannu Ryopponen, said in a statement.
Stable and long-term shareholders are the most important for a young company, even for a mature one.
