Published September 19, 2008

AIG has direct stake in three listings here

Its largest stake is in Macquarie Prime Reit, followed by First Lease & Jiutian

By JAMIE LEE
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(SINGAPORE) Ailing insurer American International Group (AIG) has direct and significant stakes in Singapore listings Macquarie Prime real estate investment trust (Reit), First Ship Lease Trust and Jiutian Chemical Group, Bloomberg data showed.

About 10 other firms listed here are exposed to investment funds owned by the world's largest insurer, which was thrown a life-line on Wednesday in the form of a US$85 billion government loan.

AIG directly owns 10.9 per cent of Macquarie Prime Reit, which works out to $75.3 million based on yesterday's closing price of 72 cents. It also holds 0.9 per cent stake of the Reit through two AIG-managed international funds, known as the Singapore bond and Acorns of Asia balanced funds.

First Ship Lease Trust has about 8 per cent, or 40.4 million shares, held directly by AIG. This is worth $34.4 million based on the last closing price of 85 cents. AIG also holds an additional 1.6 per cent of First Ship through the same two international funds.

China-based Jiutian Chemical Group has nearly 4 per cent in the direct hands of AIG. The 64.6 million shares is equivalent to $4.84 million, according to yesterday's closing price of 7.5 cents. Two AIG-managed funds - AIG South-east Asia small companies fund and Southeast Asia small and mid-cap fund - owns another 0.3 per cent.

AIG has not declared changes in shareholding to the Singapore Exchange.



First Ship Lease Trust called AIG late afternoon on Wednesday regarding the company's shareholding and was told that AIG would be holding on to its stake for now, chief financial office Cheong Chee Tham told BT.

'We have received no indication from AIG on selling,' he said.

Macquarie Pacific Star spokesperson said: 'Macquarie Pacific Star, the manager of MP Reit, maintains regular communications with the Reit's substantial unitholders,' adding that AIG has held its stake in the Reit since its listing in September 2005.

'However, we are not in a position to speak on behalf of them. AIG, as a substantial unitholder, is required to inform the market of any change in their interest in MP Reit.'

AIG-managed funds are also invested in other stocks including S-chips Ferrochina, Fibrechem Technologies and Synear Food Holdings, property firms Ho Bee Investment and Hotel Properties, marine players STX Pan Ocean and Swiber Holdings, as well as Raffles Education Corporation and Raffles Medical Group. All stakes are below 0.5 per cent.

Fibrechem and Raffles Medical have not contacted AIG on their shareholdings, spokesmen said. Ferrochina and Raffles Education declined comment.

As the US Treasury rushes to save AIG, Wall Street has turned its attention to Morgan Stanley, after the Financial Times reported that the US investment bank was in preliminary merger talks with parties including Wachovia, the fourth largest US bank based on assets, and China Investment Corporation. This follows the declared bankruptcy of Lehman Brothers in the same week.

Morgan Stanley directly owns 12 per cent of United Industrial Corporation (UIC), a property unit of Singapore's second largest bank United Overseas Bank, Bloomberg data showed. It also holds another 1.36 per cent in UIC through its asset management and investment divisions.

Some 10 per cent of logistics firm CWT is also held by Morgan Stanley. It holds 9.79 per cent directly and 0.25 per cent through its asset management arm. 'Everything remains well and unchanged now,' CWT chief financial officer Lynda Goh told BT.

Lehman has no significant direct investment in stocks here, according to Bloomberg.