NEWS

TNB shares drop on interest in 1MDB's assets

Reuters

Published
Modified 18 Jul 2015, 10:11 pm

Shares in Malaysian power firm Tenaga Nasional Bhd, fell today after it said it wanted to buy almost all of debt-laden state fund 1MDB's energy assets, adding to fears that it may overpay for the power plants.

1MDB, the centre of several investigations over its management of funds, is seeking to offload its Edra energy unit assets to pare down US$11 billion of debt. Analysts have voiced concern that suitors for those assets could pay too much if the government pushes for the fund to gain the best deal it can.

Tenaga, the country's national utility, had previously flagged its plans to purchase 1MDB's 70 percent stake in 3B, a greenfield coal-fired plant which is seen as the best of 1MDB's assets. At the time Tenaga's CEO rejected accusations that his company was bailing out 1MDB and said he would not be paying a premium.

"Our concern is premised on Edra having overpaid for these assets in the past and the holding company's need to deleverage," AffinHwang Capital said in a research note today.

Tenaga's shares were down 1.6 percent in this morning's trade after falling as much as 3.3 percent earlier. They have lost 5.5 percent since mid-June when Tenaga said it would buy the stake in the greenfield coal-fired plant.

1MDB, whose advisory board is chaired by Prime Minister Najib Razak, has 14 power assets which could be worth up to RM18 billion (US$4.73 billion), sources told Reuters in June.

This month Malaysian police raided 1MDB's office, following a report that claimed investigators looking into the firm found nearly US$700 million had been transferred to the prime minister's bank account.

Najib has denied taking any money for personal gain and said the corruption allegations are part of a malicious campaign to force him out of office.

- Reuters

Related reports

Meet the men behind latest 1MDB twist

Ambank probing CAGM over SD fabrication

Thai cops: Justo denied tampering PetroSaudi docs

'Justo met opposition figure, media tycoon'

AG not part of probe team, says task force

Video: 1MDB attack - mission for Anwar

Rafizi's denial 'typical, desperate and lame'

'Rahman Dahlan, not so easy to save Najib'

Rafizi mulls legal action on 'evil conspiracy'

S'wak Report: 'Forging docs' email tampered

'1MDB mess could hit Asean economy'

Goldman Sachs suffers in Malaysia over 1MDB

TNB shares drop on interest in 1MDB's assets

It's dark times for the media, too

Amidst grave concerns, some still create hoax

‘If unemployed can make money, so can Rosmah’

Why Nothing2hide gov’t blocks request for info?

Share this story

Comments

By posting a comment, you agree to our Terms & Conditions as stipulated in full here

TERMS & CONDITIONS

Foul language, profanity, vulgarity, slanderous, personal attack, threatening, sexually-orientated comments or the use of any method of communication that may violate any law or create needless unpleasantness will not be tolerated. Antisocial behaviour such as "spamming" and "trolling" will be suspended. Violators run the risk of also being blocked permanently.

REPORT VIOLATORS

Please use the report feature that is available below each comment to flag offending comments for our moderators to take action. Do not take matters in your own hands to avoid unpleasant and unnecessary exchanges that may result in your own suspension or ban.