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Temasek to sell three Singapore power firms

20 June 2007 – Singapore’s state-owned investment company Temasek has announced plans to sell three Singapore power generation companies over the next 12 to 18 months.

Potential buyers have been showing interest since last year in PowerSeraya Ltd., Senoko Power Ltd. and Tuas Power Ltd., Temasek said in a statement. All three are wholly owned by Temasek and together supply about 90 per cent of Singapore’s power, with a combined generating capacity of 9070 MW.

Sale of the companies has been delayed several times since 1998. One public tender for a 60 per cent stake of Tuas Power was called off in 1999 because of restructuring of Singapore Power Ltd., which distributes the power generated by the three power companies and is also wholly owned by Temasek.

In 2002, analysts estimated the companies were worth about 2 bn Singapore dollars ($1.3 bn) each. Mirant Corporation sold Philippines generating assets with 2203 MW of capacity last year to Japanese investors for $3.42 bn.

Singapore conglomerate, SembCorp Industries Ltd., itself 50 per cent owned by Temasek, said it would look at buying at least one of the Singapore power companies. Temasek has appointed Credit Suisse and Morgan Stanley as advisers for the sale, a company spokeswoman said. Temasek said it expects the sale to be completed by end 2008 or early 2009.