Temasek sells Senoko Power to Marubeni-led group for S$3.65b
By Ng Baoying, Channel NewsAsia | Posted: 05 September 2008 1654 hrs
SINGAPORE: Singapore investment company Temasek Holdings has sold its Senoko Power generating company to Lion Power Holdings for S$3.65 billion.
Lion Power is a vehicle owned by a consortium led by Japan's Marubeni Corporation. Other members of the consortium are GDF Suez of France, The Kansai Electric Power Company, Kyushu Electric Power Company and Japan Bank for International Cooperation.
Lion Power will assume S$323 million of net debt of Senoko Power as at March 31. The transaction is expected to be completed by September 12.
The deal falls in line with Marubeni's plans to expand overseas and double its power capacity in two years. It has already bought power assets in the Philippines and is building plants in the Middle East and Indonesia.
The bidding process for Senoko began in July and is the second of Temasek's three power generation companies to be sold.
The first, Tuas Power, was sold to China's Huaneng Group in March for S$4.2 billion.
With the latest deal, only Power Seraya remains within Temasek's stable. Temasek said last year that it intends to divest all of its wholly-owned power generation companies in Singapore by the end of next year.
Unlike power-hungry countries like China and India, the growth in demand for energy in Singapore is limited. But Senoko Power's sale still attracted a lot of interest.
Temasek said Lion Power's bid was the most attractive in terms of price and commercial terms.
Analysts said Temasek is taking advantage of a lack of privatisation deals in Asia's power industry, having held back divestment plans in recent years.
Still, Senoko Power was sold off about 25 per cent cheaper than Tuas Power on a per mega-watt basis.
Senoko is the largest power generation company in Singapore and provides over 30 per cent of the nation's electricity needs.
- CNA/ir
I believe.
- temasek not so stupid, if these plants are making good profits, then they would want to sell it. Means these plants have not been making good profits
- Investments fims from overseas are not stupid, they would want to buy a plant that will not make them money, means these plants got potential to make good profits.
How to make good profit after they take over?
Yes so temasek is wise to offload and take profit. Yes, foreign investments are wise to grab the chance and buy up our plants.
who is unwise, u tell me...
Its a case of whoever wins, we lose.
i think someone created this thread already.
anyway, one day our SAF will also be up for sale due to unable to make profit. Singapore is a big company, not a country.
If TH use the money to build a nuclear plant.. then it makes sense.
If TH just want to profit from the sales.. then make no sense.
Originally posted by jojobeach:If TH use the money to build a nuclear plant.. then it makes sense.
If TH just want to profit from the sales.. then make no sense.
Wow a nuclear plant
locate where huh?
Originally posted by 4sg:
Wow a nuclear plant
locate where huh?
Has to be nearby a big mass of water.
Originally posted by whiskers:I believe.
- temasek not so stupid, if these plants are making good profits, then they would want to sell it. Means these plants have not been making good profits
- Investments fims from overseas are not stupid, they would want to buy a plant that will not make them money, means these plants got potential to make good profits.
How to make good profit after they take over?Yes so temasek is wise to offload and take profit. Yes, foreign investments are wise to grab the chance and buy up our plants.
who is unwise, u tell me...
Its a case of whoever wins, we lose.
This sounds interesting.
But with regards to the last sentence... I have a viewpoint:
If others can generate electricty cheaper on a per mega-watt basis, then there's potential for cheaper electricity (Note the word potential). It would thus make perfect sense for TH to offload, and foreign firms to buy, and citizens might benefit. Might benefit only hor, don't shoot me here.
Originally posted by jojobeach:Has to be nearby a big mass of water.
A nuclear disaster will blow up the whole of sg and part of its neighbour....
mass water or no water.
Originally posted by eagle:This sounds interesting.
But with regards to the last sentence... I have a viewpoint:
If others can generate electricty cheaper on a per mega-watt basis, then there's potential for cheaper electricity (Note the word potential). It would thus make perfect sense for TH to offload, and foreign firms to buy, and citizens might benefit. Might benefit only hor, don't shoot me here.
Why others can generate cheaper electricity and not a Singaporean management ?
One ton of coal can only generate that much wattage...I wonder how can they squeeze extra wattage out ah ? LOL
Originally posted by 4sg:A nuclear disaster will blow up the whole of sg and part of its neighbour....
mass water or no water.
Then don't you think it may be a good form of national defense ?
With nuclear power plant.. maybe Singaporean males no longer need to serve NS.
If neighbour invade.. just tell them we will blow up the Nuclear plant and make this island a piece of radiated wasteland.?? hehehehe.....like that.. no country will dare to touch us lor?
Originally posted by jojobeach:Then don't you think it may be a good form of national defense ?
With nuclear power plant.. maybe Singaporean males no longer need to serve NS.
If neighbour invade.. just tell them we will blow up the Nuclear plant and make this island a piece of radiated wasteland.?? hehehehe.....like that.. no country will dare to touch us lor?
that will make the enemies aim that power plant first if they want to get rid of singapore or its neighbouring countries.
Originally posted by freedom4ever:that will make the enemies aim that power plant first if they want to get rid of singapore or its neighbouring countries.
Yes. then neighbouring countries better protect Singapore lor.. LOL...
The main issue on many Singaporeans' minds will be: Are we going to pay higher price for electricity with the privisation of Power Generating Industry?
And it wasnt even our electricity is cheap to begin with.
Originally posted by jojobeach:Yes. then neighbouring countries better protect Singapore lor.. LOL...
lol. making use of them. if the plant were to go off, this piece of land is worthless already.
Originally posted by freedom4ever:lol. making use of them. if the plant were to go off, this piece of land is worthless already.
Others want to invade Singapore is not because of the land ok ?
Singapore so small.. like a pee sai on the map.
Originally posted by 4sg:
Wow a nuclear plant
locate where huh?
singapore island. water water everywhere.
Originally posted by jojobeach:Others want to invade Singapore is not because of the land ok ?
Singapore so small.. like a pee sai on the map.
are you sure they do not want the land?
singapore is well-known to be the most idealic port location in the region.
Originally posted by Spartans:The main issue on many Singaporeans' minds will be: Are we going to pay higher price for electricity with the privisation of Power Generating Industry?
And it wasnt even our electricity is cheap to begin with.
Well, the energy market is going to be liberalised. So theres going to be competition. If you are concerned, band together with your neigbours and negotiate for cheaper electricity lor...
Originally posted by deathmaster:
are you sure they do not want the land?
singapore is well-known to be the most idealic port location in the region.
They can flatten the land to grow rubber trees lor....
Please lah.. idealic location ?.. heheehheh.... have you ever wondered why SG refused to budge from a causeway to an bridge that allows big ship to sail under ?
Originally posted by jojobeach:Why others can generate cheaper electricity and not a Singaporean management ?
One ton of coal can only generate that much wattage...I wonder how can they squeeze extra wattage out ah ? LOL
Its not that Singaporean management can't, but alot of time and money is required to invest into research and development, with the Singapore's power market so small its not economically efficient to spent money into R&D. The money could be better use for R&D to develop other industries. Also for TH, the money the get can be used for more overseas investments.
Lion Power who is more experienced in this line, have newer and better technologically advance systems which can reduce energy loss thus 'squeezing' more wattage.
I have sparse interactions with people from Tuas Power and the idea that I get from them is that with the monopoly of power opened up, competition will ultimately benefit consumers. What we might get eventually is something like what we are getting from telco nowadays, package deals, contract deals etc......
Of course it is a wise move! Were we not told she is exceptionally talented?