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Tata Power in race for Senoko

Tata Power Company Ltd is among 5 companies shortlisted by Temasek Holdings Pte for a buyout of Singapore-based power generation company Senoko Power.

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Temasek shortlists 4 others, too; deal size to be $3bn for 3,300mw producer

MUMBAI: Tata Power Company Ltd is among 5 companies shortlisted by Temasek Holdings Pte for a buyout of Singapore-based power generation company Senoko Power. The bid size is expected to be $3 billion.

Senoko is the largest power generation company in Singapore producing 3,300 mw. It operates the Senoko Power Station, which has 1,250 mw thermal steam plants and 1,945 mw of combined-cycle plants.

It also operates the Pasir Panjang Gas Turbine Station, an open-cycle gas turbine plant with a capacity of 105 mw.

Four others companies featuring in the list are Japan’s Marubeni Corporation, Malaysia’s YTL Power Bhd, France-based GDF Suez and a tie-up between Hong Kong’s CLP Holdings and Japan’s Mitsubishi Corp — OneEnergy Ltd.

A Tata Power spokesperson confirmed the development, but said this was the just first round and it will take some time before a final decision is taken on which companies will finally bid for Senoko Power. 

“It will only be after the second round of shortlisting that deliberations will take place,” the spokesperson told DNA Money.

“It’ll take a month for the picture to emerge,” he said.

Senoko sells all its electricity output into the National Electricity Market of Singapore, a competitive wholesale electricity market. It accounted for approximately 30% of Singapore’s electricity generation units sold in calendar year 2007.

For the year ended 31 March 2008, the company had revenues of $2.495 billion and EBITDA of $245 million (the figures being in Singapore dollars).
Temasek, Singapore’s state-owned investment company with $100 billion in assets, put Senoko on the block in early July this year.

“The sale of Senoko Power, which follows the divestment of Tuas Power in March this year, is a continuation of Temasek’s plan to divest all of our three Singapore power generating companies. This will provide an orderly transition to a competitive yet stable power generation market in Singapore,” Temasek had said on July 7.

Temasek sold Tuas Power to SinoSing Power Pte Ltd in March 2008; after Senoko, it will sell PowerSeraya.

Barring unforeseen circumstances, Temasek is on track to fully complete the divestment of all its three gencos by end-2009, and fulfill its undertaking to work towards a liberalised and competitive electricity market in Singapore, said the Temasek July release.
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