Temasek buys $4.8 billion stake in investment giant BlackRock

BlackRock is the world's largest asset management firm.
BlackRock is the world's largest asset management firm.PHOTO: REUTERS

SINGAPORE (BLOOMBERG) - Temasek Holdings has become one of the largest shareholders of BlackRock after it added a 3.9 per cent stake that's worth about US$3.5 billion (S$4.8 billion).

BlackRock is the world's largest asset management firm, with assets under management of almost US$7.4 trillion at the end of last year.

The Singapore state investment firm was one of several players that bought BlackRock shares when PNC Financial Services Group sold a US$14 billion stake this year, according to people familiar with the matter. Temasek added 5.95 million shares in the second quarter, according to its 13F filings Friday with the US Securities and Exchange Commission.

The investment has already paid dividends for Temasek, with BlackRock rising 8.4 per cent since June 30, closing Thursday at US$589.56 in New York. Temasek is now the fifth-largest shareholder, according to data compiled by Bloomberg. The two companies have worked together in the past, with talks underway for a joint venture in China.

Temasek last month reported its worst year since 2016 after the coronavirus pandemic hammered global stocks in March. The firm posted a preliminary portfolio value of $306 billion as of March 31.

Temasek trimmed its US holdings of Alibaba Group by half in the period, to 12.1 million shares worth US$2.6 billion. It added shares of BeiGene and China Biologic Products Holdings Inc, according to the filing.

Temasek representatives declined to comment.