SINGAPORE - Singapore's state-linked investment arm Temasek Holdings has stopped the tender process for sale of its third power generation firm, citing market conditions.
Temasek announced in early October that it had begun divestment of wholly-owned PowerSeraya Ltd but a global economic downturn has accelerated since then.
"In light of the market conditions, we have decided not to proceed further," Gwendel Tung, Temasek's director of investment, said in a statement late Tuesday.
"We are flexible as to how and when we will revisit the divestment of PowerSeraya."
The firm is the last of three Temasek power generation firms to be sold as part of efforts to liberalise the domestic energy market.
Temasek has controlling stakes in major regional firms. It has invested billions of dollars in troubled US investment bank Merrill Lynch since late last year.