Saudi Water & Electricity Company has emerged as the highest bidder for the power assets of Malaysian tycoon Ananda Krishnan estimated to be worth over $3 billion, the Star newspaper reported on Saturday, citing unidentified sources.

Krishnan's sale of the power assets has attracted 12 initial bids with a final round of bidding expected by the end of March, the report stated.

Three parties will be shortlisted for the final round, which will determine which bidder can fork out between $3.2 billion and $3.6 billion - the price tag that Krishnan was looking at, according to the widely read newspaper.

If the sale goes beyond $3 billion, it will be the biggest power deal in southeast Asia. The largest deal in the sector was struck in 2008 when Temasek Holdings sold its Singapore generation firm PowerSeraya to Malaysia's YTL Power in 2008 for $3.03 billion.

Malaysian bidders in the preliminary round included 1Malaysia Development Berhad, a government-owned strategic development company, and joint bid by the country's No.2 lender CIMB and the Employees Provident Fund, the Star said.

Krishnan, reckoned by Forbes to have assets of $9.5 billion last year, owns his power assets through Tanjong Energy Group.

Reuters had reported earlier this week that Krishnan had put his entire power portfolio up for sale with Standard Chartered Plc hired to manage the sale of about a dozen power plants.-Reuters