Mumbai: India’s biggest private electricity generator, Tata Power Co. Ltd, said it is bidding for Senoko Power Ltd, Singapore’s largest power utility.
“We confirm the development,” the Mumbai-based firm said in a statement on Wednesday after the Business Standard newspaper reported that Senoko Power may be sold for more than $3 billion (Rs12,600 crore).
Tata Power will get access to generation capacity of 3,300MW should it win the bid, the report said.
The acquisition will be the utility’s second large investment overseas. It spent $1.2 billion on buying two mines in Indonesia last year to secure coal supplies. Tata Power has invested Rs240 billion ($5.7 billion) to build 5,600MW of thermal and wind power capacity across India.
“There could be an advantage in terms of access to better technology and that comes from working in countries that are more advanced in distribution and transmission of power,” said Mansingh Deshmukh, Mumbai-based analyst for MF Global Sify Securities Pvt. Ltd. Deshmukh recommends investors buy its stock.
Tata Power shares fell 3.65%. to Rs1,061.10 on the Bombay Stock Exchange on Wednesday.
Malaysia’s YTL Power Bhd, France’s GDF Suez SA, Japan’s Mitsubishi Corp. and Marubeni Corp., and OneEnergy Ltd jointly with Hong Kong’s CLP Holdings Ltd are the other bidders shortlisted by Singapore’s Temasek Holdings Pte Ltd to bid for Senoko, Reuters said on Tuesday.