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Singapore's GIC halves stake in UBS after losses

Singapore's GIC halves stake in UBS after losses

Singapore's sovereign wealth fund, GIC, intends to sell up to 93 million existing shares in UBS Group AG.

This will reduce its stake in the Swiss bank from 5.1% to 2.7% .

The sale will be through an accelerated bookbuild offering to institutional investors.

'The sale of shares realizes a loss on the UBS investment,' GIC said in a statement.

'GIC is disappointed that the UBS investment resulted in a loss, but its Citigroup investment has earned a positive return. The combined return on the UBS and Citigroup investments has been positive in mark-to-market terms.'

Said Lim Chow Kiat, CEO: 'GIC made the UBS sale despite the loss because conditions have changed fundamentally since GIC invested in UBS in February 2008, as have UBS’ strategy and business.

'It makes sense now for GIC to reduce its ownership of UBS and to redeploy these resources elsewhere.'

UBS and Citigroup were two major investments GIC made in the early stages of the 2008 global financial crisis.

GIC has agreed to a 90 day lock-up on those outstanding shares, subject to customary exceptions. UBS Group AG will not receive any proceeds from the transaction.

UBS Investment Bank is acting as placement agent in the transaction.

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