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Source:
www.temasekholdings.com.sg
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Temasek successfully completes divestment of Tuas
Power |
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Power genco sold to China Huaneng Group for
S$4.235 billion |
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Temasek Holdings (“Temasek”) today (14 Mar
2008) announced the signing of a Share Purchase Agreement with SinoSing
Power Pte Ltd (“SinoSing”), a wholly-owned subsidiary of China Huaneng
Group (“China Huaneng”), a leading power company based in the People's
Republic of China, for the 100% sale of Temasek’s wholly-owned Tuas
Power Ltd (“Tuas Power”) for a cash consideration of S$4.235 billion.
The transaction is expected to be completed by 24 March 2008. |
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The sale of Tuas Power, one of the
three major power generation companies in Singapore, marks the
completion of a competitive and rigorous bidding process which
began in October last year when Temasek announced its plan to
divest Tuas Power. This is also the first of Temasek’s three
power generation companies to be sold under its long-stated plan
to divest all of its wholly-owned power generation companies in
Singapore. |
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Apart from working closely with the
regulators and government authorities over the years to ensure an
orderly transition to a stable and competitive power generation market
in Singapore, Temasek has also kept in close touch with the board,
management and union leaders of Tuas Power during this sale process. |
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Mr Wong Kim Yin, Managing Director,
Investments, Temasek said, “We are pleased to announce the successful
conclusion of the Tuas Power divestment process. China Huaneng is an
established player with a strong track record in the power business. Its
proposal through SinoSing was the most attractive. It emerged as the
winner based on clear considerations of price and acceptable commercial
terms. We have no doubt that the future growth and development of Tuas
Power as an anchor power provider in Singapore will benefit from the
experience and resources that China Huaneng brings.” |
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Paying tribute to the board, management and
staff of Tuas Power, Mr Wong added, “I would also like to put on record
our thanks to the board, management and staff of Tuas Power, and
especially to the leaders and members of the Union Of Power And Gas
Employees for their support and advice through the years of
restructuring and also through this first sale process. They have
ensured that Singaporeans continue to enjoy high quality electricity
supply through their professionalism, dedication and commitment. I am
confident that they will find a supportive and constructive long term
shareholder in China Huaneng.” |
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Mr Nachiappan RKS, General Secretary
of Union of Power and Gas Employees (“UPAGE”) said, “It’s been a
long journey since the days when Singapore Power was first
corporatised. There have been many changes, and sometimes things
can be difficult. We understand and appreciate the need to provide
electricity competitively and reliably for Singapore, and we are
glad we have had Temasek as an understanding shareholder, working
with us to prepare for this sale. We look forward to working with
the new shareholder in the same spirit of a long-term tripartite
partnership.” |
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Commenting on the acquisition, Mr Huang
Long, Vice President of China Huaneng, said, “This transaction
represents a major step for China Huaneng in its goal to diversify
its assets across geographies and technologies. We are excited to
have reached agreement on this transaction with Temasek, a well
regarded company and look forward to strengthening the cooperation
between our two companies in the future. Tuas Power is an important
addition to our portfolio, and we are excited to begin working with
the management and employees of this company, and to continuing the
supply of reliable, environmentally-friendly and competitively
priced energy to the people of Singapore.” |
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About Temasek Holdings |
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Incorporated in 1974, Temasek Holdings is an
Asia investment firm headquartered in Singapore. Supported by affiliates
and offices around Asia, it manages a diversified S$164 billion (US$108
billion) portfolio, concentrated principally in Singapore, Asia and the
OECD economies. |
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Temasek today holds and manages a
diversified portfolio of companies, covering 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. |
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Temasek's total shareholder return
since inception in 1974 has been more than 18% compounded
annually. It has a corporate credit rating of AAA/Aaa by rating
agencies Standard & Poor's and Moody's respectively. |
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For further information on Temasek
please visit
www.temasekholdings.com.sg. |
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About China Huaneng Group |
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Based in Beijing, China Huaneng is the
largest power generation company in China, with installed
generation capacity of over 71,000 MW. China Huaneng also owns a
50% stake in the Australian power generation joint-venture
company, OzGen. Total assets for the Group exceed RMB 325 billion
(~US$45 billion). |
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China Huaneng is also the controlling
shareholder of Huaneng Power International, Inc., which is listed
on the New York, Hong Kong, and Shanghai stock exchanges. |
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About Tuas Power |
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Tuas Power is one of the three major
players in Singapore’s electricity industry. Established in 1995,
Tuas Power owns businesses in electricity generation, trading and
retail services as well as the development and provision of
multi-utilities and its related services. |
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Tuas Power has generation assets with
a licensed capacity totaling 2,670 MW comprising 1,200 MW of
oil-fired steam plants and 1,470 MW of gas-fired combined cycle
plants. Tuas Power also offers retail energy services through its
wholly owned subsidiary, Tuas Power Supply Pte. Ltd. Tuas Power
has a generation market share of over 25% of the Singapore market.
For the financial year ended 31 March 2007, Tuas Power recorded
revenue of S$2,267 million and EBITDA of S$331 million. As at 31
December 2007, Tuas Power had net debt of S$71 million. |
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About Union of Power and Gas
Employees (UPAGE) |
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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. |
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Source:
www.temasekholdings.com.sg News Release 14 Mar 2008 |
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