Temasek puts sale of power generation company on hold

Singapore’s sovereign wealth fund cited current market conditions as the reason for delaying the sale of the power generating company PowerSeraya.

Singapore’s sovereign wealth fund Temasek Holdings has delayed the sale of its PowerSeraya power generation company because of the market downturn.

The fund had put PowerSeraya on the market last month based on “indications of interest from investors,” according to Gwendel Tung, investment director, in a statement. However “in light of market conditions”, the sale has now been pulled.

Temasek, which is owned by Singapore’s ministry of finance, is still committed to selling all its power generating companies in Singapore, the fund said, stressing that PowerSeraya would continue to operate as usual despite the withdrawal. The power company, with a generation capacity of 3,100-megawatts, accounted for about more than a quarter of Singapore’s electricity supply in 2007.

PowerSeraya had revenues of S$2.8 billion and EBITDA of S$355 million for the year ending 31 March 2008. Temasek said last year it was selling three power generation companies by the end of 2009, and has recently sold two.

The fund sold Senoko Power, the city’s largest energy producer, in September to Lion Power for S$3.7 billion. Lion Power is a special purpose acquisition company backed by a consortium of Japanese energy companies and other businesses. In March, Temasek sold Tuas Power to China Huaneng Group for S$4.2 billion.

Temasek is an active investor in the private equity asset class. It makes private equity direct investments and has invested in a number of private equity funds managed by other parties.