Malaysia's state-owned power company Tenaga Nasional Bhd (Tenaga) has indicated it may bid for Australia's Loy Yang Power company, a report said today.

"We are looking at the assets whether they are viable or not," Pian Sukro, Tenaga's chief executive director was quoted as saying by the Malay Mail newspaper.

"There is a possibility but we have not made any decision," he said.

Loy Yang is Australia's largest privately-owned power company. It operates a 2,000 megawatt power plant and a coal mine.

Horizon Energy Investment Group, one of the owners, values the company at RM7.8 billion (US$2 billion). The other owners are US-based CMS Energy Corp and NRG Energy Inc.

Loy Yang has RM7.2 billion (US$1.9 billion) of debt and Horizon had said Loy Yang might need new funds as it seeks to reorganise its debt. Loy Yang has a RM1.9 billion (US$500 million) debt repayment due in May 2003.