BASIS POINT-UPDATE 1-Temasek shortlists 5 in Senoko sale-sources

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By Foster Wong and David Lau

HONG KONG, Aug 4 (Reuters Basis Point) - Singapore government-owned investment firm Temasek Holdings Pte Ltd [TEM.UL] has shortlisted around five companies from preliminary bidding for its sale of Senoko Power Ltd, banking sources said.

France's GDF Suez (GSZ.PA: Quote, Profile, Research), Japan's Marubeni Corp (8002.T: Quote, Profile, Research), India's Tata Power Co Ltd (TTPW.BO: Quote, Profile, Research), Malaysia's YTL Power Bhd (YTLP.KL: Quote, Profile, Research) and the OneEnergy Ltd tie-up between Hong Kong's CLP Holdings (0002.HK: Quote, Profile, Research) and Japan's Mitsubishi Corp (8058.T: Quote, Profile, Research) are the shortlisted bidders, bankers told Reuters Basis Point, in a deal that market players have said could fetch about $3 billion.

Other firms that were understood to have last week submitted non-binding expressions of interest included Bahrain investment bank Arcapita Inc, Singapore's Keppel Corp (KPLM.SI: Quote, Profile, Research) and Sembcorp Industries Ltd (SCIL.SI: Quote, Profile, Research).

The shortlisted candidates will be allowed to conduct due diligence around September.

The Senoko sale, the second of three generating company divestments that Temasek plans by mid-2009, has sparked huge interest in the loan market with more than 10 banks earlier talking to would-be bidders about debt financing to back the acquisition.

With an electricity generating capacity of 3,300 megawatts (MW), Senoko is larger than the 2,670 MW Tuas Power that was sold to China's Huaneng Group for S$4.2 billion ($3.1 billion) in March this year.

For the financial year ended March 31, 2008, Senoko had revenues of S$2.5 billion and earnings before interest, tax, depreciation and amortisation of S$245 million.