1MDB nears sale of power assets to China/Qatar consortium
HONG KONG, November 20, 2015
Malaysia's 1MDB is nearing the sale of its power assets to a consortium including Qatar's Nebras Power and China General Nuclear Power Holding Corp, people familiar with the matter said on Friday, in a deal that would bring relief to the scandal-hit state fund.
1Malaysia Development Bhd (1MDB), currently at the centre of a political and financial scandal that has also embroiled Prime Minister Najib Razak, needs to shed assets to pare back $11 billion of debt.
The people declined to disclose the deal value, but a person familiar with the matter previously told Reuters it could value the assets at about 18 billion ringgit ($4.2 billion) including net debt.
The people, who declined to be identified as they were not authorised to speak to the media, said a deal could be announced as early as Monday.
Talks are in the final stages and the parties are trying to find a solution to Malaysian rules that cap foreign ownership in power businesses at 49 per cent. That could still derail the deal, the people said.
1MDB has earmarked 16 billion to 18 billion ringgit for the sale of power unit Edra Global Energy Bhd, which is the largest independent power producer in Bangladesh and Egypt and the second biggest in Malaysia after Malakoff Corp.
State electricity utility, Tenaga Nasional Bhd, 30 per cent owned by Malaysian sovereign wealth fund Khazanah Nasional, had put in a conditional offer.
A 1MDB spokesman said a formal announcement would be made at the appropriate time. "As negotiations are ongoing, it is not appropriate for 1MDB to comment on this matter."
Nebras did not immediately reply to a Reuters email seeking comment. CGN, China's largest nuclear power operator, could not be reached for comment.
Bloomberg reported on Friday that 1MDB was near to selling its power assets to the Chinese-led group. - Reuters
