GIC consortium said among bidders for Sithe Global Power assets

The GIC corporate logo seen during the GIC Staff Conference in Singapore.
The GIC corporate logo seen during the GIC Staff Conference in Singapore. PHOTO: BLOOMBERG

KUALA LUMPUR (BLOOMBERG) - A group including Singapore's sovereign wealth fund GIC is among suitors that have submitted bids for Sithe Global Power LLC's stakes in two Philippine power plants, people with knowledge of the matter said.

The consortium, including Macquarie Infrastructure Corp. and Malaysian power company Malakoff Corp., submitted a non- binding offer for the stakes, the people said. The Blackstone Group LP-owned company's sale could fetch more than US$1 billion (S$1.3 billion), they said, asking not to be identified as the process is private.

Thailand's Ratchaburi Electricity Generating Holding Pcl, the Philippines' Aboitiz Power Corp. and Japan's Marubeni Corp. also placed bids by the Wednesday deadline, the people said.

New York-based Sithe is selling a more than 60 per cent holding in Mariveles power plant, a 600-megawatt facility, and a roughly 40 per cent stake in Dinginin power station, a 1,300- megawatt facility that's being built, the people said. Both are located in the Bataan province, west of the Philippine capital of Manila.

Rising demand for electricity in Asia Pacific has been spurring dealmaking. Announced mergers and acquisitions involving firms in the region's power and utilities industries totaled US$170 billion last year, up from US$133 billion in 2014, according to Bloomberg-compiled data. China General Nuclear Power Corp. agreed in November to buy control of Edra Global Energy Bhd. from 1Malaysia Development Bhd. for about US$2.3 billion, the data show.

Rum Herabat, chief executive officer of Ratchaburi, said the Thai company is studying the Sithe assets before making a decision. "The project provides an interesting investment opportunity," he said in an e-mailed response to Bloomberg queries.

Representatives for Sithe, Malakoff and Macquarie didn't immediately respond to e-mailed requests for comment. Aboitiz Power President Tony Moraza declined to comment, as did representatives for GIC and Marubeni.

The Mariveles and Dinginin power stations are co-owned by the Philippines-based Ayala Corp. and Sithe Global. Ayala in 2012 acquired a 17.1 per cent stake in Mariveles for US$155 million.