<article>Debt-laden state investment firm <a style="color: #000080;" href="http://www.1mdb.com.my/" target="_blank">1Malaysia Development Bhd</a> (1MDB) said it welcomed <a style="color: #000080;" href="http://www.tnb.com.my/" target="_blank">Tenaga Nasional Bhd</a>&#8216;s (TNB) non-binding offer for its power assets parked under <a style="color: #000080;" href="http://www.1mdb.com.my/current-business/energy" target="_blank">Edra Global Energy Bhd</a>.</article>

Debt-laden state investment firm <a style="color: #000080;" href="http://www.1mdb.com.my/" target="_blank">1Malaysia Development Bhd</a> (1MDB) said it welcomed <a style="color: #000080;" href="http://www.tnb.com.my/" target="_blank">Tenaga Nasional Bhd</a>&#8216;s (TNB) non-binding offer for its power assets parked under <a style="color: #000080;" href="http://www.1mdb.com.my/current-business/energy" target="_blank">Edra Global Energy Bhd</a>.
The state investment firm was responding to national power producer, TNB&#8217;s announcement on the local stock exchange today that it had submitted an indicative non-binding proposal to acquire the five domestic and eight international power assets of Edra.
&#8220;TNB would like to emphasise that it remains in the initial stages of its assessment of Edra’s power assets. Therefore, there can be no assurance that any transaction will be concluded. Any potential transaction would need to make strong commercial and financial sense and be value accretive to TNB’s shareholders,&#8221; the filing with Bursa Malaysia stated.
However, TNB was favourable of Edra’s power assets, calling it &#8220;a strong fit for TNB’s growth strategy&#8221;.
In June, Energy, Green Technology and Water Minister Maximus Ongkili said TNB was to take over 1MDB&#8217;s 70 per cent stake in the Project 3B power plant. It was also<a href="http://www.thestar.com.my/Business/Business-News/2015/05/09/TNB-takes-over-Project-3B/?style=biz" target="_blank"> reported earlier </a>that TNB had taken over the mandate from 1MDB for the 2000MW coal-fired power plant, known as Project 3B.
The power producer believed that a combination (of both parties&#8217; assets) would help ensure the long-term continuity of steady and competitively priced power to domestic consumers, and enable TNB to pursue its strategy of establishing an international footprint in areas where growth in power demand is increasing.
1MDB said that as part of the rationalisation plan announced by the Ministry of Finance in May this year, it is actively pursuing various options with respect to the monetisation of its power assets, which are housed under Edra.
&#8220;Accordingly, 1MDB elcomes TNB’s interest in Edra,&#8221; its press statement said.
1MDB has also received indicative, non-binding offers from other local and international parties in relation to the power assets, as part of the process to monetise its investment in Edra.
For that, 1MDB&#8217;s board of directors will review the various proposals received in due course, following which select parties will be invited by 1MDB’s financial advisor to conduct further due diligence on Edra, the statement added.
This process will culminate in the submission of binding offers for the board’s consideration.
1MDB further said that its board will assess the offers based on value maximisation to 1MDB’s shareholders, deal certainty, and terms that are fair and reasonable.
Edra was initially primed for an initial public offering (IPO) in Malaysia, that would have emerged to be the largest IPO in the local market in two years. The IPO plans were scrapped a few months ago after 1MDB faced severe public  criticism for its hefty debt, pulling down the sentiment for a succesful IPO.
Also read:
<a style="color: #ff0000;" title="Tenaga Nasional to take 1MDB’s 70% stake in Project 3B" href="http://www.dealstreetasia.com/stories/tenaga-nasional-to-take-1mdbs-70-stake-in-project-3b-8110/" rel="bookmark">Tenaga Nasional to take 1MDB’s 70% stake in Project 3B</a>
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<a style="color: #ff0000;" title="Sembcorp in ‘preliminary’ talks with 1MDB to acquire Edra Global Energy" href="http://www.dealstreetasia.com/stories/singapores-sembcorp-in-preliminary-talks-with-1mdb-on-acquisition-7401/" rel="bookmark">Sembcorp in ‘preliminary’ talks with 1MDB to acquire Edra Global Energy</a>
<a style="color: #ff0000;" title="1MDB could opt to sell power assets, call off IPO" href="http://www.dealstreetasia.com/stories/1mdb-could-opt-to-sell-power-assets-call-off-ipo-4234/" rel="bookmark">1MDB could opt to sell power assets, call off IPO</a>

1Malaysia Development Bhd (1MDB) says it welcomes Tenaga Nasional Bhd's (TNB) non-binding offer for the former's power assets in Edra Global Energy Bhd.

1MDB welcomes TNB's non-binding offer for power assets

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1MDB welcomes TNB's non-binding offer for power assets

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