Temasek sells Singaporean power generator for S$3.7bn

A blank cheque company sponsored by a Japanese consortium has agreed to acquire Senoko Power from the sovereign wealth fund.

Singaporean sovereign wealth fund Temasek has agreed to sell the Southeast Asian city-state’s largest energy producer for a cash consideration of roughly S$3.7 billion ($2.5 billion; €1.8 billion).

Special purpose acquisition company Lion Power, backed by a consortium of Japanese energy companies and other businesses, will acquire power generation company Senoko Power, which provides roughly 30 percent of the island nation’s electricity needs, according to a statement from Temasek.

Lion Power will assume S$323 million of Senoko’s net debt in addition to the cash consideration. If the sale obtains required regulatory approval, it is expected to be completed by 12 September.

Senoko has a combined installed capacity of roughly 3,300 megawatts, including 1,945 megawatts of combined cycle plants, 1,250 megawatts of thermal plants and 105 megawatts of gas turbines. The company’s retail energy division reported revenues of S$2,495 million and EBITDA of S$245 million for the fiscal year ending in 31 March.

Senoko is the second major power generation company Temasek has sold since it announced plans in July of last year to liquidate its wholly-owned power generation companies in Singapore by the end of 2009. In March, Temasek sold Tuas Power to China Huaneng Group for S$4.2 billion.

Lion Power, which beat out other Senoko suitors in a competitive bidding process launched in July, is backed by the Japan Bank for International Cooperation, the Kyushu Electric Power Company, the Kansai Electric Power Company, French energy company GDF Suez and Tokyo-based conglomerate Marubeni.