Merrill Lynch expects these transactions to close by mid-January 2008. Temasek Holdings will invest $4.4 billion in Merrill Lynch common stock and has the option to purchase an additional $600 million of Merrill Lynch common stock by March 28, 2008. Its ownership position will at all time represent less than 10% of Merrill Lynch’s outstanding common stock.
John Thain, chairman and CEO of Merrill Lynch, said: One of my first priorities at Merrill Lynch was to strengthen the firm’s balance sheet, and today we have made great progress towards that by bolstering our capital position through these investments and our announced sale of Merrill Lynch Capital.
The benefits of these transactions are not limited to strengthening our financial position. We also see significant benefits from partnering with Temasek Holdings given its sizeable investments across Asia, particularly in Singapore, China and India. Their capital investments will enhance Merrill Lynch’s ability to drive new growth opportunities around the world.
