State-linked Singapore investment firm Temasek Holdings has sold its last remaining power utility to Malaysian company YTL Power - days after saying the tender process had stopped because of market conditions.

Sabre Energy Industries, wholly-owned subsidiary of Malaysia's YTL Power International Berhad, will pay 3.6 billion Singapore dollars (2.4 billion US) and assume 200 million dollars in net debt, a Temasek statement said late Tuesday.

"After we stopped the tender process last week, YTL Power International put forward an unsolicited proposal which met our requirements," said Gwendel Tung, Temasek's director for investment.

"We are pleased with the successful outcome of the PowerSeraya divestment."

Temasek announced in early October that it had begun divestment of wholly-owned PowerSeraya but last week said it had decided not to proceed further, "in light of the market conditions".

The sale of PowerSeraya is part of Temasek's divestment plans announced in July 2007, and the transaction with YTL Power International is expected to be completed early next year, Temasek said.

PowerSeraya 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 bank Merrill Lynch since late last year.