THE majority shareholders of Senoko Energy are considering selling their stakes in the Singapore-based power firm, seeking a valuation of as much as US$3 billion, said sources.
Japan’s Marubeni Corp and French utility Engie are working with financial advisers on the potential divestment, which could kick off as soon as this month, the sources said on condition of anonymity because the information is private.
Marubeni and Engie each own a 30 per cent stake in the utility firm, they said.
Deliberations are ongoing, and the owners could decide against any deal. Representatives for Engie, Marubeni and Senoko declined to comment.
The Senoko owners are joining Temasek Holdings and Shell in selling their power assets in Singapore. The city-state’s investment firm is working with Barclays on a potential sale of some of Pavilion Energy’s assets for a valuation of at least US$2 billion; Shell is considering divesting the Bukom oil refinery, Bloomberg News reported last year.
Senoko Energy has been one of Singapore’s energy providers since 1977, says its website. The company’s power station in northern Singapore has a licensed capacity of 2,644 megawatts and supplies about 20 per cent of the country’s electricity needs.
Marubeni and Engie are part of a consortium that took over Senoko from Temasek for S$3.65 billion in 2008, a statement issued that year announced.
The group, which also includes Kansai Electric Power, Kyushu Electric Power and Japan Bank for International Corp, also took up S$323 million of net debt at the time. The sale of Senoko was part of Temasek’s plan to divest all of its wholly-owned power generation companies in the country at the time. BLOOMBERG
