KUALA LUMPUR - The majority shareholders of Senoko Energy are considering selling their stakes in the Singapore power supplier, seeking a valuation of as much as US$3 billion (S$4 billion), according to people familiar with the matter.

Japan’s Marubeni Corp and French utility Engie are working with financial advisers on the potential divestment, which could kick off as soon as in February, the people said. Marubeni and Engie each own a 30 per cent 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 state investment firm Temasek and Shell in selling their power assets in Singapore. Temasek is working with Barclays on a potential sale of some of Pavilion Energy’s assets for a valuation of at least US$2 billion, while Shell is considering divesting the Bukom oil refinery, Bloomberg News reported in 2023.

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 2,644MW and supplies about 20 per cent 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 statement issued that year. The group, which also includes Kansai Electric Power, Kyushu Electric Power 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. BLOOMBERG