Wednesday, December 03, 2008

YTL Power bought Power Seraya Ltd for S$3.8 Billion

YTL Power has shown its mettle during this financial crisis, when it spent a hefty S$3.8 Billion (RM9.1 Billion) to purchase for the stake of Power Seraya Ltd from Temasek Holdings. This power plant produces about 25% of the total energy needed in Singapore.

This definitely shows YTL ability in making essential investment during down town. They had just bought significant stake in REIT that holds Ngee Ann City and Wisma Atria in Orchard Road.

For more details, go to NST


Temasek Holdings today announced that it had sold the third and last power generation company in its stable, PowerSeraya Ltd, to Malaysia's leading power company YTL Power International Bhd for S$3.8 billion.

The company said it had signed a share purchase agreement this evening with Sabre Energy Industries Pte Ltd, a wholly-owned subsidiary of YTL Power International for the 100 per cent sale of its wholly-owned PowerSeraya Ltd.

Sabre Energy will pay S$3.6 billion in aggregate consideration and assume S$201 million of adjusted net debt of PowerSeraya Ltd as at March 31 of this year.

The transaction is expected to be completed by early next year, Temasek Investment Director Gwendel Tung said in a statement tonight.

Last week, Tung announced that Temasek had stopped the tender process for the sale of the power generation company in light of the market conditions then.

“After we stopped the tender process last week, YTL Power International put forward an unsolicited proposal which met our requirements,” she said.

“We are pleased with the successful outcome of the PowerSeraya divestment,” Tung said, adding 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.

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. — BERNAMA

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