Temasek to Sell Three Power Companies

SINGAPORE ~ Singapore’s state-linked investment firm Temasek Holdings plans to sell all three power-generating companies under its stable in the next 12 to 18 months, it said this week.

Wong Kim Yin, Temasek managing director of investments, said the decision to divest its interest from PowerSeraya, Senoko Power and Tuas Power was part of efforts to liberalize the affluent city-state’s electricity market.

No value was given for the companies, but Wong said in a statement there has been “a lot of interest from potential buyers since last year.”

Temasek expects the divestment process to start in the second half of this year and be completed by end 2008 or early 2009.

Wong said the three companies had been organized to operate independently under a competitive environment after liberalization, and with the regulatory framework in place, it was now time for Temasek to divest.

“These developments have set the stage for a competitive yet stable power-generation market to operate in Singapore. Hence, it is timely for us to divest the gencos (generation companies) as the next step towards the liberalization of the electricity market,” Wong said.

With the Singapore economy positioned to post strong growth in the next few years, “the conditions are conducive for the divestment of the gencos,” he said.

PowerSeraya has a licensed capacity of 3,100 megawatts (MW), Senoko Power 3,300 MW and Tuas Power 2,670 MW. All three offer retail energy services through their subsidiaries.

Temasek manages a diversified global portfolio worth S$129 billion (US$80 billion).

Its portfolio covers industries such as telecom and media, financial services, real estate, transportation and logistics, energy and resources, infrastructure, engineering and technology and bioscience and healthcare.

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