Financial Times, 7 Oct 2008, John Burton
t may appear brave for Temasek Holdings, the Singapore state investment company, to launch the sale of the last of the city-state’s three power plants in the face of a global credit crunch. More so, when it is advancing the sale deadline from mid-2009 to the end of this year.
But the current financial crisis may actually increase the appeal of PowerSeraya to buyers. Utilities are seen as safe investment harbours in troubled times because of their strong cash flows.
Temasek’s confidence in completing the disposal of PowerSeraya, Singapore’s second largest power generator, ahead of schedule also rests on the fact that the sale of its sister plants this year exceeded price expectations. Analysts had estimated that Temasek might receive about $5bn for all three plants. Instead, the first two, Tuas and Senoko, raised more than $6bn and PowerSeraya is likely to fetch at least $2.5bn in spite of Singapore being regarded as a mature energy market.
Read More
