Temasek Holdings sells its three power generation companies
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Temasek kicks off sale of its power generation companies
By Ng Baoying, Channel NewsAsia | Posted: 18 October 2007 1858 hrs
so how does the peasant benefit from this? interest to the CPF?
SINGAPORE: has Temasek Holdings kicked off the sale of its three power generation companies or gencos.
The first to be sold will be Tuas Power, which had a 26.1 percent share of Singapore's electricity market last year.
Temasek did not name an asking price, but market watchers have estimated that Tuas Power could fetch up to S$3 billion.
Tuas Power is first on the auction block because it has seen the most investor interest. It has a book value of S$1 billion, but the bidding is expected to be fierce.
Wong Kim Yin, Temasek Holdings' managing director of investment, said: "Many of them are regional players. Many of them are actually power sector players. There are also folks from the financial community. There are people who are strategic players as well.
"So, without naming names, we are quite sure that based on the feedback we have so far, we see sufficient interest that can allow us to get the outcome that we'd like to see."
The sale of the three gencos is in line with efforts to diversify and stabilise Singapore's energy sources. After several delays, the government earlier this year gave a time frame of 12-18 months for the divestment.
Several Singapore names - including SembCorp Industries - are said to be interested in buying over the gencos. Reports also named global players such as General Electric, Babcock & Brown, and Tokyo Electric Power as those planning to enter the fray.
Daphne Roth from the ABN AMRO Bank said: "Market sentiment is still very bullish on any infrastructure deal because there's a shortage of brownfield, greenfield infrastructure around in Asia.
"There is a glut there, but most of the people look at Singapore and the scale of our economic growth at present, which is very good. Also, the stability of our economy and the fact that these utilities normally generate very good cash flow - that's why they like it."
Temasek expects to receive indicative offers for Tuas by the end of the year, and binding offers by March next year. It has not set any reserve price.
Rather, Temasek will assess bidders from an all-rounded perspective, which includes factors like having a clean sale with minimal liabilities.
It will also look at how the sale of one will affect the sales of the other gencos. Temasek plans to sell each power company to a different buyer.
Successful bidders can have the option of expanding their plant.
Temasek's Mr Wong said: "Each of these businesses has a generation licence generated by the regulator. So to increase the size of the plant, they would have to get approval from the regulator.
"Having said all that, each of these businesses is very well positioned. Singapore is only that big. There's only so much of land. Each one of these power plants has the expansion capabilities built into their sites, built into their businesses.
"So, from that perspective they are very well positioned to do it and they would need regulatory approval to expand their business."
Temasek plans to sell the remaining two gencos - Power Seraya and Power Senoko - by the first half of 2009. - CNA/ir -
But will those holding directorships or senior management be from non-party membership?
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The people then will have options to choose if they want to purchase power from whatever companies.
Democracy mah, give the people more choices.
Ok lah, I choose... Down with PAP
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er... doesn't temesek also 'owns' semi corp??
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they want to shed liabilities of future cost up.
coz we often link temasek with PAP govt! -
ho ho... tough time ahead...
get ready for more inflation to come...
this time is becoz 'private' companies are raising charges for power... not the gov... so peasants can't blame the gov..... ever raising oil prices... u tink pub bills will be smaller?
Smart move indeed... -
Will this big Temasek Sale replace the Annual Singapore Sale ?
Will it generate enough to cover the big hole created in the loss of $3 Billion paid to Thaksin for a useless Shin Corp in Thailand ?
Up till today, Temasek has yet to give any public accounting to this matter.
In the first place, why is Temasek involved in a Singapore domestic essential service that is milking the Citizen's money ?
Was its Corporate Charter inclusive of making Singapore's Funds to work in Singapore, and profiteer from Singaporeans; or was it not for Temasek to manage the Singapore Fund overseas and generate profit from overseas ? -
Same old story isn't it - profiteer from Singaporeans and "donate" overseas and then tell us how much profits they made. If they can make so much profits with the spectacular losses, imagine how much they profiteer from us. despicable dishonorable siao rens.Originally posted by Atobe:Will it generate enough to cover the big hole created in the loss of $3 Billion paid to Thaksin for a useless Shin Corp in Thailand ?
Was its Corporate Charter inclusive of making Singapore's Funds to work in Singapore, and profiteer from Singaporeans; or was it not for Temasek to manage the Singapore Fund overseas and generate profit from overseas ?
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one thing is for certain .....
rates will be going up ....... -
ANother big show of taking from another pocket to another... same system with our transportation system lah... increase and increase... prepare more candles in future... not black out but electricity been cut off.... anytime.. everything at their mercy!!! this is a sick world!!!