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LoginSelling PowerSeraya to Malaysia is not good to our Defence
21 posts
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Malaysia always threaten to cut our water supply... Now they can sabo us with POWER too.
Sold for $3.8 billion
Reuters- Temasek Holdings said on Tuesday it has sold its third and last power generator PowerSeraya to a subsidiary of Malaysia's YTL Power International Bhd for an enterprise value of S$3.8 billion.
Temasek said in a statement that Sabre Energy Industries, a wholly-owned subsidiary of YTL, will pay S$3.6 billion and assume S$201 million of adjusted net debt of PowerSeraya as of March 31, 2008. The deal is expected to be completed early next year, Temasek Investment Director Gwendel Tung said in a statement on Tuesday night.
Last week, Temasek scrapped the sale of Power Seraya as the global credit crisis drove down asset prices and froze funding for potential buyers. The investment company started the tender process in October as Singapore further opens the industry to competition.
'After we stopped the tender process last week, YTL Power put forward an unsolicited proposal which met our requirements,' said Ms Tung.
'We are pleased with the successful outcome of the PowerSeraya divestment.'
Ms Tung added that YTL Power International was an established industry player with a strong track record in power investments, both in Malaysia and internationally.
She said Temasek was confident that YTL's expertise and experience would add significant value to Singapore's electricity market and PowerSeraya in particular.
Commenting on the acquisition, YTL Power managing director Tan Sri Francis Yeoh said the company was glad to have had the opportunity to acquire PowerSeraya.
'The 3,100 megawatts power station operated by PowerSeraya will give us significant participation in the Singapore energy market.
'Its attraction lies both in its strong position in the energy market and its complementary multi-utility business,' he said.
Mr Yeoh said YTL Power, through its wholly owned subsidiary, Wessex Water in the UK, had considerable expertise in the water sector and the acquisition of PowerSeraya would enable YTL to grow its utility business in the region.
Temasek had earlier sold its two other power generation companies, Senoko Power Ltd and Tuas Power Ltd under its divestment plan announced in July last year.
A Marubeni Corp-led group agreed in September to pay S$1.1 million per megawatt of capacity for Senoko Power, and China Huaneng Group said in March it would pay S$1.58 million per megawatt for Tuas Power.
Seraya, which generates power from oil and gas, has an installed capacity of 3,240 megawatts, or 30 per cent of the island's capacity.
The pool of funds for mergers and acquisitions has shrunk after the collapse of the US subprime mortgage market. Merger and acquisition transactions in Asia's power industry totalled $16 billion so far this year, a fifth of 2007, according to data compiled by Bloomberg News.
PowerSeraya posted a profit of S$218 million on revenue of S$2.79 billion in the financial year ended March. The Seraya Power Station consists of two blocks of natural gas-fired combined cycle plants and nine units of steam plants.
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runs out of money due to huge losses in investments so gotta think of ways and means to get more money.
NOw NTUC income also functions as a financial institution by offering fixed deposits. There is ad about getting people to transfer their cpf fund to special account. Money Money money makes their world go round, go rich, go arrogant, go heartless.
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one can only imagine why our power plants are sold. imagine a situation of energy crisis when energy prices shoot up to the roof. the anger then would be directed at the power companies which are foreign. the government could then be the "good" ones to give handouts to subsidise the increase in energy prices.
however, one would wonder, instead of selling the power plants and essentially sub-contract energy responsibilities to foreigners, why not secure the energy supplies by buying energy resources?
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I mean Genting is doing resorts work so the impact wont be that big right? Now we are talking about Electricity, something that is vital. Why sell it to a Malaysia company?
I can understand why they sell Tuas Power to a China Company and Senoko power to a Japan company. Well, 远交近攻.. But to YTL?! haiz
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Originally posted by s.roylee:
I mean Genting is doing resorts work so the impact wont be that big right? Now we are talking about Electricity, something that is vital. Why sell it to a Malaysia company?
I can understand why they sell Tuas Power to a China Company and Senoko power to a Japan company. Well, 远交近攻.. But to YTL?! haiz
Better hope in the future, all these 3 countries are not pissed at Singapore at the same time.
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