Singapore’s Temasek launches power group sale

19 October 2007 – Temasek Holdings, the Singapore state investment company, yesterday launched what is expected to be one of its biggest divestments by offering for sale the first of the city-state’s three power companies.

Tuas Power, which has a book value of S$1bn (US$684m), is expected to be sold by March next year, with sister units PowerSeraya and Senoko following by mid-2009. The three power groups could together raise up to S$9bn.

Temasek is selling the three power groups to different investors to encourage competition in the energy sector.

Several Asian energy groups have expressed interest, including Hong Kong’s China Light & Power and Hongkong Electric; Japan’s Marubeni and Tokyo Electric Power; Australia’s Babcock & Brown; and Singapore’s Keppel Corp and Sembcorp Industries, both of which are owned by Temasek.

Financial investors such as Macquarie International Infrastructure and Singapore’s Cityspring Infrastructure are also seen as possible bidders.

Tuas has a 26 per cent share of Singapore’s electricity market.