The majority shareholders of Senoko Energy Pte. are considering selling their stakes in the Singapore-based power firm, seeking a valuation of as much as US$3 billion ($4.04 billion), according to people familiar with the matter.
Japan’s Marubeni Corp. and French utility Engie SA are working with financial advisers on the potential divestment, which could kick off as soon as this month, the people said. Marubeni and Engie each own a 30% stake in the utility firm, the people said, asking not to be identified as the process is private.
Deliberations are ongoing and the owners could decide against any deal, the people said. Representatives for Engie, Marubeni and Senoko declined to comment.
The Senoko owners are joining Temasek Holdings Pte and Shell Plc in selling energy and petrochemical assets in Singapore. The city-state’s investment firm is working with Barclays Plc on a potential sale of some of Pavilion Energy Pte’s assets for a valuation of at least US$2 billion, while Shell is considering divesting the Bukom oil refinery, Bloomberg News reported last year.
Senoko Energy has been one of Singapore’s energy providers since 1977, according to its website. The company’s power station in northern Singapore has a licensed capacity of 2,644 megawatts and supplies about 20% of the country’s electricity needs.
Marubeni and Engie are part of a consortium that took over Senoko from Temasek for $3.65 billion in 2008, according to a press statement issued that year. The group, which also includes Kansai Electric Power Co., Kyushu Electric Power Co. and Japan Bank for International Corp., also took up $323 million of net debt at the time. The sale of Senoko was part of Temasek’s plan to divest all of its wholly-owned power generation companies in the country at the time.
