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1MDB sells power assets to China’s CGN for RM9.83b

KINIBIZ Ailing 1MDB)has executed a deal to sell its power assets to China General Nuclear Power Corp (CGN Group) for RM9.83 billion, more than a month after receiving final bids from three interested parties.

In a statement today, 1MDB said it is selling its entire equity in all its power assets held under Edra Global Energy to CGN Group for cash. CGN will also assume all associated debt and cash in Edra via the sale, slated for completion by February 2016.

“CGN Group was a clear winner in this international tender, based on the objectives announced by 1MDB previously, namely value maximisation, acceptable commercial terms and certainty of transaction execution,” said 1MDB president and group executive director Arul Kanda Kandasamy. “The purchase by CGN Group brings a significant foreign direct investment commitment to Malaysia and is a clear vote of confidence in the Malaysian economy.”

Earlier on Oct 16, 1MDB announced that it had received final, binding and fully funded bids from three parties for the power assets, though it did not specify bidders’ identities at the time. Tenaga Nasional, the only local bidder, issued a separate statement announcing its bid.

Sources told KINIBIZ that the other two parties were CGN Group and Qatari outfit Nebras Power. Tenaga Nasional’s bid was believed to be in the region of RM8 billion, meaning the winning bid was almost 25 percent higher.

Following the sale Edra Global’s staff are committed to ensuring continuity, said Mark Ling, Edra Global’s president and executive director, “Edra has successfully integrated what was originally 13 power plants across five countries, into one cohesive and strong platform, that practises the highest of international standards.”

For the full story go to KINIBIZ .

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