Temasek sells PowerSeraya to YTL Power International for an enterprise value of S$3.8 billion
Singapore
Temasek Holdings (Private) Limited (“Temasek”) has signed a Share Purchase Agreement this evening with Sabre Energy Industries Pte Limited (“Sabre Energy”), a wholly-owned subsidiary of Malaysia’s leading power company, YTL Power International Berhad (“YTL Power International”), for the 100% sale of Temasek’s wholly-owned PowerSeraya Limited (“PowerSeraya”) at an enterprise value of S$3.8 billion.
Sabre Energy will pay S$3.6 billion in aggregate consideration and assume S$201 million of adjusted net debt of PowerSeraya as at 31 March 2008. The transaction is expected to be completed in early 2009.
Ms Gwendel Tung, Director, Investment, Temasek said, “After we stopped the tender process last week, YTL Power International put forward an unsolicited proposal which met our requirements. We are pleased with the successful outcome of the PowerSeraya divestment.”
Ms Tung added, “YTL Power International is an established industry player with a strong track record in power investments, both in Malaysia and internationally. We are confident that their expertise and experience will add significant value to Singapore's electricity market and PowerSeraya in particular.”
Commenting on the acquisition, Tan Sri (Dr) Francis Yeoh, Managing Director of YTL Power said, “We are delighted to have this opportunity to acquire PowerSeraya. The 3,100 MWs 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. YTL Power, through its wholly owned subsidiary, Wessex Water in the UK, has considerable expertise in the water sector and the acquisition of PowerSeraya will enable us to grow our utility business in the region. We are very pleased to have been chosen as a partner by Temasek.”
PowerSeraya is the third and final of Temasek’s power generation companies to be sold under its divestment plan announced in July 2007.
Mr Wong Kim Yin, Managing Director, Investment, Temasek, added, “With the sale of PowerSeraya, Temasek would have fulfilled its commitment to help develop a competitive power generation market in Singapore. Since the restructuring over ten years ago of our generating assets into three independent operating companies, we have received steadfast support from the Union of Power and Gas Employees. Without their cooperation and support for a competitive, efficient and world-class power industry, this progressive development over the last 14 years would not have been possible. We would also like to acknowledge the contributions of the past and present staff, management and the board of directors of PowerSeraya. We thank them, along with their counterparts in the Tuas and Senoko gencos."
Mr Nachiappan RKS, General Secretary of Union of Power and Gas Employees (“UPAGE”) commented, “We are happy that UPAGE and its members have contributed to this significant industry development. UPAGE has had close and fruitful working relations with Temasek and the management of the gencos. We look forward to continuing this partnership with the gencos and their new owners, to ensure that our workers' concerns and interests are well understood and taken care of.”
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About Temasek Holdings
Incorporated in 1974, Temasek Holdings is an Asia-centric investment firm headquartered in Singapore. Supported by affiliates and offices around the world, it owns a diversified S$185 billion (US$134 billion) portfolio of blue-chip companies and investments as at 31 March 2008, concentrated principally in Singapore, Asia and the OECD economies.
Temasek's investment strategies centre on four themes – Transforming Economies, Growing Middle Class, Deepening Comparative Advantages and Emerging Champions. Its portfolio of companies covers nine major sectors: financial services; telecommunications and media; transportation and logistics; real estate; infrastructure, industrial and engineering; energy and resources; technology; life sciences; and consumer and lifestyle.
Total shareholder return for Temasek since its inception in 1974 has been more than 18% compounded annually in Singapore dollars. It has a corporate credit rating of AAA/Aaa by rating agencies Standard & Poor's and Moody's respectively since 2005.
For further information on Temasek, please visit www.temasek.com.sg
About YTL Power International
YTL Power International is a leading power generation company in Malaysia and is listed on the Main Board of Bursa Securities. YTL Power International owns and operates 1,212 MW of gas-fired combined cycle plants in Malaysia. YTL Power International also holds a 35% stake in the 1,220 MW coal-fired Jawa Power project in Indonesia, owns a 100% stake in Wessex Water Services Limited, a regulated water and sewerage company in the UK, and a one third stake in ElectraNet SA, a South Australian transmission utility company.
About PowerSeraya
PowerSeraya is the second largest power generation company in Singapore, providing over 27% of the nation’s electricity needs. PowerSeraya has a registered capacity of 2,940 megawatts (MW) comprising 732 MW of combined cycle plants, 1,990 MW of steam turbine plants and 218 MW of open cycle gas turbine plants. PowerSeraya owns and operates Pulau Seraya Power Station and Jurong Power Station.
PowerSeraya also offers retail energy services through its wholly owned subsidiary, Seraya Energy Pte Ltd. For the financial year ended 31 March 2008, PowerSeraya recorded revenues of S$2,793 million, an EBITDA of S$355 million and a net income of S$218 million. As at 31 March 2008, PowerSeraya had an adjusted net debt of S$201 million after adjusting for a S$100 million dividend paid by PowerSeraya to Temasek in September 2008.
About Union of Power and Gas Employees (UPAGE)
Formed in 1995, UPAGE represents the interests of more than 3,500 employees in the power and gas industry, including the Singapore Power Group and the power generation companies. An affiliate of the National Trades Union Congress, UPAGE has been consulted and involved in discussions on the restructuring and liberalization of the power industry since 1995, when the power and gas operations of the Public Utilities Board were corporatised.
For more information, please contact:
Daliea Mohamad
Director, Temasek Holdings
Tel: (65) 6828 6641
E-mail: daliea@temasek.com.sg
Ivan Tan
Weber Shandwick (for Temasek)
Tel: (65) 9635 9765
E-mail: itan@webershandwick.com
Ho Say Keng
Company Secretary, YTL Power International
Tel: (60) 1960 00013
E-mail: skho@ytl.com.my
Nachiappan R K Sinniah
General Secretary, Union of Power and Gas Employees ("UPAGE")
Tel: (65) 6284 8769
E-mail: s.nachi@upage.org.sg