At the time of our investment, NatSteel was the dominant steel producer in Singapore and commanded around 65% of the local market.

GEMS Fund II (the “Fund” is a 22.2% shareholder of 98 Holdings, an acquisition vehicle established for the purpose of making a general offer for NatSteel. Other shareholders of 98 Holdings included Mr. Ong Beng Seng and Standard Chartered Private Equity.

In January 2003, 98 Holdings acquired 51.23% of the outstanding share capital of NatSteel at a price of S$2.06 per share, or S$394 million (US$225 million).

Taking advantage of the peak of the steel cycle, NatSteel announced the sale of its entire regional steel businesses in Asia to Tata Iron & Steel for US$286 million in August 2004. This all-cash transaction was completed in February 2005. Following the sale, NatSteel will comprise of various industrial businesses covering petrochemicals in Thailand, construction products (pre-cast concrete, premix mortar and related building products) in Singapore, specialty & environmental chemicals, and engineering products & services. These remaining businesses are sizeable in their own right.

The Fund exited this investment at the end of 2005, realising 3 times its original investment at an internal rate of return("IRR") of 50%.