YTL Power buying Singapore power plant for S$3.8b

KUALA LUMPUR: YTL Power International Bhd has proposed to acquire the 100% stake in Singapore’s PowerSeraya Ltd for an enterprise value of S$3.8bil from Temasek Holdings (Private) Ltd.

The company said on Tuesday that the S$3.8bil comprise of an aggregate consideration of S$3.6bil and an assumption of adjusted net debt of S$200mil.

PowerSeraya is the third and the last of the three power generating companies which Temasek put up for sale under its planned divestment of the companies, which was announced in July 2007.

PowerSeraya is the second largest power generation company in Singapore in terms of installed capacity, with a total licensed capacity of 3,100MW, representing about 25%of Singapore’s total licensed generation capacity.

PowerSeraya also operates oil trading and multi-utility businesses.

The transaction is subject to the approval of the shareholders of YTL Power. Subject to such approval,

YTL Power said it expected the completion of the proposed acquisition would be by Feb 28,. 2009.

DBS Bank Ltd is providing S$2.25bil of credit facilities to YTL Power to partially fund the purchase.