Temasek weighs $2.7 billion Pavilion Energy asset sale: Sources
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Temasek is the world’s ninth-largest state investment firm, with about US$492 billion in total assets.
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SINGAPORE - Singapore’s Temasek is considering selling some of Pavilion Energy’s assets and seeking a valuation of at least US$2 billion (S$2.7 billion), according to people with knowledge of the matter.
The state investment firm is working with Barclays on a potential sale that would exclude the gas pipeline business, which Singapore considers a strategic asset, said the people. Temasek has started gauging interest from potential buyers for the assets of the liquefied natural gas (LNG) company, they said, asking not to be identified as the process is private.
Considerations are at an early stage and Temasek could still decide to keep the assets for longer, the people said. Representatives for Barclays, Pavilion Energy and Temasek declined to comment.
A disposal of the Pavilion Energy assets could come after Temasek posted its worst annual return in seven years and warned of an uncertain road ahead. Investment returns from the firm, as well as GIC and the Monetary Authority of Singapore, are among the biggest contributors to the national budget, which is in deficit as the cost of providing services rises.
Temasek is the world’s ninth-largest state investment firm, with about US$492 billion in total assets, according to SWF Institute data. Singapore assets represented the largest share of its portfolio for the second year in a row and now stand at 28 per cent, up from the 27 per cent recorded in 2022. While it has remained bullish on China for several years, holdings there remained unchanged at 22 per cent of its portfolio.
Pavilion Energy is a wholly-owned subsidiary of Temasek that trades and ships LNG in Asia and Europe, according to its website. Founded in 2013, the firm bought a 20 per cent interest in Tanzania gas blocks for about US$1.3 billion. Three years later, Singapore appointed the company as one of the two LNG importers for the country. The firm now accounts for a third of the city-state’s industrial gas supply. In Spain, it imports around 10 per cent of the country’s LNG. BLOOMBERG
