The sovereign wealth fund of Singapore, Temasek Holdings has sold its entire stake in the Fortescue Metals Group of Australia. The company had 4.1 per cent stake in the company.

Fortescue Metals Group one of the leading firm in Australia in the metal segment and is being run by billionaire Andrew Forrest. Temasek Holdings has sold its stake to a group of overseas institutions. The deal was finalized for $880 million.

Temasek is also a major player in its field with a worth fund of $134-billion. However, this move has surprised the market as the firm had disinvested in Australian metal market.

Fortescue Metals Group of Australia is the third-largest iron ore miner in the country. Though, there has been a huge price rise in ore last year due to the global economic slowdown and recession, but the stake sale in this period of time will not going to be a wise decision as per the analysts.

So far as Fortescue is concerned, it is not among the top favorites for the investors for last couple of year due to its share price. It has risen its price from A$2 in late 2008 to $7.27 which was recorded yesterday.