Singapore’s Biggest Power Plant Sold to Japanese-Led Consortium

Text of report in English by Japan’s largest news agency Kyodo

Singapore, Sept. 5 Kyodo – Singapore’s state investment firm Temasek Holdings Pte. Ltd. has sold the largest of Singapore’s three power generation plants to a consortium led by Japan’s Marubeni Corp. for S$3.65 billion (US$2.5 billion), Temasek said Friday.

Temasek signed a share purchase agreement Friday with Lion Power Holdings for the full sale of wholly owned Senoko Power after a bidding process that began in July.

Temasek has been pushing plans to divest three Singapore power generation plants under its ownership.

Senoko, in the northern part of the island state, is the second plant to be sold. The first was sold to a Chinese company in March.

Temasek hopes to sell the third by the end of next year.

The Senoko plant has a generation capacity of 3,300 megawatts, supplying 30 per cent of Singapore’s electricity needs. It sells its output through a competitive wholesale electricity market in Singapore and had revenues of S$2.5 billion for the financial year ended March 31.

Lion Power is owned by a consortium of Marubeni Corp., Kansai Electric Power Co., Kyushu Electric Power Co., Japan Bank for International Cooperation and GDF Suez SA, one of the world’s biggest utility companies.

The transaction is expected to be completed by Sept. 12.

Gwendel Tung, director, Investment, Temasek said, “Lion Power’s proposal was the most attractive in terms of price and commercial terms among a field of highly reputable investors.”

Chihiro Shikama, a Marubeni executive officer, said, “This sizeable investment is a significant vote of confidence in the Singapore economy and energy sector. “(The company)looks forward to playing a significant role in the provision of reliable, competitively priced electricity in Singapore.”

In March, Temasek sold Tuas Power to SinoSing Power Pte. Ltd., a subsidiary of China’s Huaneng Group for S$4.2 billion.

PowerSeraya is the remaining plant still owned by Temasek.

Originally published by Kyodo News Service, Tokyo, in English 1144 5 Sep 08.

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