(Bloomberg) -- PT Medco Energi Internasional is in exclusive talks to buy a controlling stake in Senoko Energy Pte., according to people with knowledge of the matter, in a deal that could value the Singapore-based power firm at as much as $1 billion.

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The exclusivity arrangement for talks over a 70% stake in Senoko will expire at the end of the month, said the people, asking not to be named as the process is private. Deliberations are ongoing and there is no certainty that Jakarta-based energy producer Medco will proceed with any deal, the people said.

Medco Chief Financial Officer Anthony Mathias said neither Medco nor any of its subsidiaries are involved in discussions to buy a controlling stake in Senoko. A Senoko spokesperson declined to comment.

The majority shareholders of Senoko were considering selling their stakes in the Singaporean electricity retailer at a valuation of as much as $3 billion, Bloomberg news reported in February. That valuation has since come off substantially because of a worsening outlook, the people said.

Earlier this month, Sembcorp Industries Ltd. agreed to buy 30% of Senoko from Engie Global Developments for an undisclosed sum, according to a stock exchange filing.

Japan’s Marubeni Corp. and French utility Engie SA are part of a consortium which, in 2008, bought Senoko from Singapore’s Temasek Holdings Pte. for S$3.65 billion ($2.84 billion). The group also included Kansai Electric Power Co., Kyushu Electric Power Co. and Japan Bank for International Cooperation, and it took up S$323 million of net debt at the time.

The sale of Senoko in 2008 was part of Temasek’s plan to divest all of its wholly-owned power generation companies in the country.

--With assistance from Sing Yee Ong, Eko Listiyorini, Stephen Stapczynski and Claire Jiao.

(Updates with company comment in third paragraph.)

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