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China group gets Tuas Power for $3.9b
CHINA Huaneng Group has won the bidding for Singapore's Tuas Power (picture), having offered between US$2.8 billion ($3.9 billion) and US$3 billion to buy the utility firm owned by sovereign wealth fund Temasek Holdings, the Wall Street Journal's online edition cited people familiar with the situation as saying.
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China Huaneng Group, the parent company of China's largest listed power producer by capacity, Huaneng Power International, is diversifying its revenue stream by entering overseas markets even as it expands its operations in China, the fastest-growing major economy in the world.
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The WSJ reported that government controls on domestic electricity prices, a legacy of China's planned economy, had been hurting Huaneng's profits in a time of high inflationary pressures.
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Tuas Power is the first of three utilities being privatised by the Singapore Government to encourage more competition in the sector. With 2,670 megawatts of electricity-generating capacity, it contributes about 25 per cent of Singapore's power needs, according to its website.
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Temasek plans to launch the sale of the other two major power generators — PowerSeraya and Senoko Power — in the coming months, the WSJ reported. The three power generation companies have a combined generation capacity of 9,070 megawatts and together supply about 90 per cent of Singapore's power needs, said the WSJ.
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At least five other bidders had been short-listed in the sale of Tuas Power, including Japan's Marubeni Corp, Hong Kong Electric Holdings, India's Reliance Energy — a joint venture between Australia's Macquarie and India's GMR Infrastructure — and Malaysia's Tanjong, the WSJ reported.
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Some of these could compete again for the remaining two utilities, it added. CHINA Huaneng Group has won the bidding for Singapore's Tuas Power (picture), having offered between US$2.8 billion ($3.9 billion) and US$3 billion to buy the utility firm owned by sovereign wealth fund Temasek Holdings, the Wall Street Journal's online edition cited people familiar with the situation as saying.
.
China Huaneng Group, the parent company of China's largest listed power producer by capacity, Huaneng Power International, is diversifying its revenue stream by entering overseas markets even as it expands its operations in China, the fastest-growing major economy in the world.
.
The WSJ reported that government controls on domestic electricity prices, a legacy of China's planned economy, had been hurting Huaneng's profits in a time of high inflationary pressures.
.
Tuas Power is the first of three utilities being privatised by the Singapore Government to encourage more competition in the sector. With 2,670 megawatts of electricity-generating capacity, it contributes about 25 per cent of Singapore's power needs, according to its website.
.
Temasek plans to launch the sale of the other two major power generators — PowerSeraya and Senoko Power — in the coming months, the WSJ reported. The three power generation companies have a combined generation capacity of 9,070 megawatts and together supply about 90 per cent of Singapore's power needs, said the WSJ.
.
At least five other bidders had been short-listed in the sale of Tuas Power, including Japan's Marubeni Corp, Hong Kong Electric Holdings, India's Reliance Energy — a joint venture between Australia's Macquarie and India's GMR Infrastructure — and Malaysia's Tanjong, the WSJ reported.
.
Some of these could compete again for the remaining two utilities, it added. CHINA Huaneng Group has won the bidding for Singapore's Tuas Power (picture), having offered between US$2.8 billion ($3.9 billion) and US$3 billion to buy the utility firm owned by sovereign wealth fund Temasek Holdings, the Wall Street Journal's online edition cited people familiar with the situation as saying.
.
China Huaneng Group, the parent company of China's largest listed power producer by capacity, Huaneng Power International, is diversifying its revenue stream by entering overseas markets even as it expands its operations in China, the fastest-growing major economy in the world.
.
The WSJ reported that government controls on domestic electricity prices, a legacy of China's planned economy, had been hurting Huaneng's profits in a time of high inflationary pressures.
.
Tuas Power is the first of three utilities being privatised by the Singapore Government to encourage more competition in the sector. With 2,670 megawatts of electricity-generating capacity, it contributes about 25 per cent of Singapore's power needs, according to its website.
.
Temasek plans to launch the sale of the other two major power generators — PowerSeraya and Senoko Power — in the coming months, the WSJ reported. The three power generation companies have a combined generation capacity of 9,070 megawatts and together supply about 90 per cent of Singapore's power needs, said the WSJ.
.
At least five other bidders had been short-listed in the sale of Tuas Power, including Japan's Marubeni Corp, Hong Kong Electric Holdings, India's Reliance Energy — a joint venture between Australia's Macquarie and India's GMR Infrastructure — and Malaysia's Tanjong, the WSJ reported.
.
Some of these could compete again for the remaining two utilities, it added.
Source:
http://www.todayonline.com/articles/242856.asp
