Dear Jackie
I refer to your news report "Singapore Technologies: All's well that ends well?" on Monday 6 October 2003 which contained a number of significant errors.
Your report attributes the Singapore government as having made the decision by Singapore Technologies Pte Ltd (STPL) to issue exchangeable notes for its shares in CapitaLand Ltd and ST Engineering Ltd. There is absolutely no basis for this presumption in your report.
I would like to point out that STPL is an independent company that manages its businesses on a commercial basis to maximise long term shareholder returns. STPL's decisions with respect to its businesses are taken solely by the Board and Management of the company, and the Singapore government is neither directly nor indirectly involved in these decisions.
I also wish to clarify that assuming full exchange, Singapore Technologies Pte Ltd (STPL) will retain a 51.1% share in ST Engineering Ltd and a 52.5% in CapitaLand Ltd, and not 50.7% and 51.7% respectively as reported in paragraph 1 of the article.
Finally, I would like to highlight that under terms of the issue of exchangeable notes, Singapore Technologies Treasury Services Ltd, the issuer of the notes, will have the option to buy back the notes for cash at the three-year call option. However, the holders of the notes have the right to convert their notes into the underlying shares of the respective companies, if they so choose.
I would appreciate it if FinanceAsia could post or publish this letter of clarification to your 6 October 2003 article.
Yours sincerely
Ng Boon Yew
Chief Financial Officer
Singapore Technologies Pte Ltd
