If I am not mistaken, the government is talking about full liberalization (consumer & industry alike). During boom time, there might not be spare capacity, but if Singapore go into recession, then the big power sucker might shut down and leaving a lot of spare for the 3 to grab. One thing funny in Singapore is, when there is a few companies fighting in a liberalize sector, they always work in some form of cartel to gain the maximum profit from consumer e.g. bus & mrt & taxi (but bus & mrt ultimately belong to the same group of people, majority of taxis as well). Singaporean are looking forward for the liberalization hoping there might be some cost saving for them, and government offload all their power gen almost at the same time make the thing fishy.

Under a fair market, efficiency is very important, but noting not all 3 power gen have the same efficiency, so the less one might not be benefiting from that. Just my guess only.

Well the last to be offered is not the most popular one among the 3. Tuas was the favaourite, Senoko was the biggest and Seraya the last one is just the 'calefare' one to make the trio a party.

LATEST NEWS!!

YTLPOWER BIDDING FOR SERAYA BUT,

Aiyo !! POWER SERAYA SALE PUTOFF TO NEXT YEAR!!!

Read below.

1 November, 2008

Power failure
The S$2.9bn (US$2bn) 18-month bridge facility backing the acquisition of Singapore genco Senoko Power by Japan’s Marubeni has not yet received any commitments in general syndication. Given the present state of financial markets, it won’t come as a surprise if the deal sees no participation in general syndication at all by mid-November when the deal is targeted to close.

However, some are not ruling out a few last-minute commitments as the Singapore dollar market still remains liquid. In the deal's favour is the fact that it has already been prefunded by MLAs ANZ, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Dexia Bank, Dresdner Kleinwort, KBC Bank, Mizuho Corporate Bank, Natixis, OCBC and RBS.

The facility pays 100bp over SOR for the first six months, 120bp for the next six months and 140bp for the remainder of the tenor. The blended margin is 120bp over SOR and the all-in is 170bp over SOR.

Meanwhile, worsening market conditions have pushed back the sale of PowerSeraya to the first quarter of next year. Temasek, which owns the genco, is said to have received bids in the first round that have not encouraged the entity to proceed with the sale, according to bankers familiar with the situation.

Moreover, with deteriorating market conditions it is also challenging to find support from lenders to fund such a big acquisition.

Following the successful sale of Tuas Power and Senoko Power earlier in the year, many expected PowerSeraya's privatisation to fetch a good price for Temasek. PowerSeraya is the best among the three gencos.

Among those putting in indicative bids for PowerSeraya are Keppel, SembCorp Industries, CLP Holdings with Itochu, Hong Kong Electric, YTL and Arcapita.

While Temasek's move to postpone the sale to next year appears to be a wise decision, many feel this might lead to a clash between the financing backing it and the takeout of a S$2.25bn bridge loan put together for Tuas Power’s acquisition in March. Huaneng Group emerged as the winning bidder on Tuas with a S$4.23bn bid.

Bankers expect the takeout to arrive in the first quarter of 2009 with the borrower looking for an additional S$700m-$800m to be used for repowering of the plant.

Tuas Power's bridge paid a top level all-in of 86.7bp over SOR.

This post has been edited by calmwater: Nov 2 2008, 03:43 AM

Good news that they are bidding, but a bit sian the deal pushed back to next quarter. If the Senoko one doesn't go through, might have another chance at it.

THANKS A Lot for your info .Francis Yeoh was deem interested investing in Singapore. Recent aquisition of Singapore Reits by YTL corp shows that. This time he will try his best for the seraya bid as it is the last chance for YTL power in enter into Singapore Power Business.

But don get too excited from this though until it is really confirm.

This post has been edited by darkknight81: Nov 2 2008, 06:35 PM

It is a dilemma for the successful bidder's of Tuas and Senoko. They just simply offered to pay too much.

I am glad YTL POWER is very much more careful.

---

Added on November 3, 2008, 6:05 amIf YTL POWER can acquire Seraya they would become a major IPP in south east asia. Seraya's present capacity is 3100 MW and will increase to 3900 MW in 2010 with completion of a gas fired plant with capacity of 800 MW. Add their power generation in Malaysia, and the total will be about 5000 MW.

Even though it is very exciting, yet Francis is very careful not to overpay for the asset.

This post has been edited by calmwater: Nov 3 2008, 06:05 AM

Looks like Hong Kong's CLP is shortlisted. No news about the rest.

http://www.bloomberg.com/apps/news?pid=new...id=aKdJL233bNCU

Hmmm it would seem prudent that YTLPOWER is not offering so much, but then Temasek is not a cash strapped company, so for sure it won't sell below it's expectations. Unlike the desperate Enron which was being liquidated when YTLPOWER bought WW, Temasek is still extremely strong on the cash front.

Comes to question though, should YTL pay more for a good asset or offer less and wait for best buys?

Overall world market scenario doesn't look good, even if the stock market is rebounding somewhat at present. Temasek would want to sell Seraya at a premium, as it did with the two gencos already sold but since then the sudden downturn in asset valuations worldwide makes it difficult to put a genuine price on Seraya. The cautious bidding may cause them to delay the sale to be fair to all parties, so no one is short changed.

YTLPOWER rarely wins a bid, going by its history, has a very cautious way of doing business. Personally I don't mind and am willing to wait for better opportunities. This deals are big money, one mistake can be very costly. Better safe than sorry.

Yup. Remember the money are being raise from the warrants.

I am waiting to offload my warrant B to buy the more mother share

Why not just convert WB instead? I think that still come with premium

Yup was thinking of that too.

5 November, 2008

LOANS: PowerSeraya Sale On Track
Contrary to earlier reports about the postponement of the privatisation of PowerSeraya, the third and the last Singapore-based genco put on the block by Temasek Holdings, the sale process is very much on track. Of the six bidders that submitted bids in late October, CLP Holdings, Arcapita and YTL have been shortlisted.

These successful bidders will now be submitting their final bids by December 2. Arcapita and YTL are likely to avail of the stapled financing as they do not have any backing from lenders, while an eight-bank group is providing financing to CLP Holdings.

Arcapita and YTL are in negotiations with potential lenders to back them, but will likely be able to borrow funds at not less than 300bp over SOR all-in, which is also the level at which the two stapled financings have been put in place for the sale of PowerSeraya.

This means the bidders will have tough time getting funds especially when financial markets continue to reel under tremendous pressure. The sale, widely anticipated to fetch around S$5bn, is expected to sail through by the end of December. However, Temasek may call off the sale if the bids are below its reserve price.


Go YTLPOWER GO

I don think YTL power can get a good bargain from this acquisition from Termasek. So, i will prefer if YTL power can have their power or water treatment plant in US instead. As obama is stretching on Green Energy.

Last reported earnings for Power Seraya was SGD218mill in net profits. That is equivalent to more than RM500mil or 50% of YTLPOWER's last year net profits.

I say it's a good deal if they get it around SGD3.5 - 4 billion. Which is about 16 - 18 times net profits.

a point to note is that power plants are usually designed to last for 25-30 years.

edited to correct grammer

This post has been edited by ante5k: Nov 6 2008, 03:04 PM

You still can continue running, but the maintenance will be a lot and the efficiency of the plant will depreciate too...

I like the fact that they are building a new gas fired plant of 800 MW capacity and also the maintenance crew for the PAKA and Pasir Gudang plants can provide their services too. This will help in keeping costs down. Earning Sing dollars and paying wages in Ringgit. WOW!!

just wanna seek advice YTLPOWR now at this price 1.75 can buy

http://www.ytlcommunity.com/commnews/files...ex%20Water4.pdf

This link will have all the info, pros and cons for this company.

Mind to share your purpose for buying this counter is it for long term or short term trading?

i will hold untill march. but i know nothing about this stock. just know they will be a sharebuy back... so seek advice from SIFU