Persons familiar with the development were quoted by the Financial Times as saying that the acquisition will strengthen the acquirer’s presence in the growing financial markets.
Financial reforms including the Dodd-Frank act in the US as well as global capital regulation for financial firms known as Basel are expected to provide new business opportunities for firms like Markit, the news agency added.
It is still unclear whether the principal sovereign wealth fund will purchase shares, either from Markit’s management or its institutional investors.
However, the deal is likely to value the entire financial data company at more than £3bn.
The stake sale will also enable the London-based company to "broaden its governance and reduce conflicts" at a time when it is looking to expand.
A group of banks, asset managers, brokers and its management operate Markit, but no party has over 15% shareholding in the company.
Temasek has certain stakes in some companies including Bank of China, Bharti Airtel, the Indian telecoms group, and Chesapeake Energy Corporation, the American natural gas producer.
Incorporated in 1974 and supported by 11 affiliates, Temasek operates as an investment company and has offices in Asia and Latin America. It owns an S$198bn ($160bn) portfolio as at 31 March 2012, mainly in Singapore, Asia and growth markets.
