Malaysia always threaten to cut our water supply... Now they can
sabo us with POWER too.
Sold for $3.8 billion
Reuters- Temasek Holdings said on Tuesday it has sold its third
and last power generator PowerSeraya to a subsidiary of
Malaysia's YTL Power International Bhd for an
enterprise value of S$3.8 billion.
Temasek said in a statement that Sabre Energy Industries, a
wholly-owned subsidiary of YTL, will pay S$3.6 billion and assume
S$201 million of adjusted net debt of PowerSeraya as of March 31,
2008. The deal is expected to be completed early next year, Temasek
Investment Director Gwendel Tung said in a statement on Tuesday
night.
Last week, Temasek scrapped the sale of Power Seraya as the
global credit crisis drove down asset prices and froze funding for
potential buyers. The investment company started the tender process
in October as Singapore further opens the industry to
competition.
'After we stopped the tender process last week, YTL Power put
forward an unsolicited proposal which met our requirements,' said
Ms Tung.
'We are pleased with the successful outcome of the PowerSeraya
divestment.'
Ms Tung added that YTL Power International was an established
industry player with a strong track record in power investments,
both in Malaysia and internationally.
She said Temasek was confident that YTL's expertise and
experience would add significant value to Singapore's electricity
market and PowerSeraya in particular.
Commenting on the acquisition, YTL Power managing director Tan
Sri Francis Yeoh said the company was glad to have had the
opportunity to acquire PowerSeraya.
'The 3,100 megawatts power station operated by PowerSeraya will
give us significant participation in the Singapore energy
market.
'Its attraction lies both in its strong position in the energy
market and its complementary multi-utility business,' he said.
Mr Yeoh said YTL Power, through its wholly owned subsidiary,
Wessex Water in the UK, had considerable expertise in the water
sector and the acquisition of PowerSeraya would enable YTL to grow
its utility business in the region.
Temasek had earlier sold its two other power generation
companies, Senoko Power Ltd and Tuas Power Ltd under its divestment
plan announced in July last year.
A Marubeni Corp-led group agreed in September to pay S$1.1
million per megawatt of capacity for Senoko Power, and China
Huaneng Group said in March it would pay S$1.58 million per
megawatt for Tuas Power.
Seraya, which generates power from oil and gas, has an installed
capacity of 3,240 megawatts, or 30 per cent of the island's
capacity.
The pool of funds for mergers and acquisitions has shrunk after
the collapse of the US subprime mortgage market. Merger and
acquisition transactions in Asia's power industry totalled $16
billion so far this year, a fifth of 2007, according to data
compiled by Bloomberg News.
PowerSeraya posted a profit of S$218 million on revenue of
S$2.79 billion in the financial year ended March. The Seraya Power
Station consists of two blocks of natural gas-fired combined cycle
plants and nine units of steam plants.
