<article>The initial public offering (IPO) of 1Malaysia Development Bhd’s (<a href="http://www.dealstreetasia.com/?s=1mdb" target="_blank">1MDB</a>) power business is likely to be delayed as the state-owned company concentrates on resolving debt repayments, news wires reported.</article>

The initial public offering (IPO) of 1Malaysia Development Bhd’s (<a href="http://www.dealstreetasia.com/?s=1mdb" target="_blank">1MDB</a>) power business is likely to be delayed as the state-owned company concentrates on resolving debt repayments, news wires reported.
Just a day ago, the local media was abuzz with billionaire T Ananda Krishnan’s reported interest to take up a cornerstone position in the mega listing of 1MDB’s energy assets.
<a href="http://www.bloomberg.com/" target="_blank">Bloomberg</a> reported about the ongoing discussions to sell stake in the unit to Krishnan, as 1MDB works to repay the firm’s bridge loan by this month. This new development is likely to hold up the $3 billion IPO of 1MDB Energy Bhd.
The share sale, originally scheduled for as early as in April, will be pushed into the second half of the year, sources said.
It was reported that Krishnan is in talks to exercise an option, which he gained when he sold energy assets in Tanjung Energy Holdings to 1MDB in 2012, to buy a stake in the power business.
The size and terms of the deal are still under discussion.
1MDB missed two repayment deadlines for a MYR2 billion bridge loan and has been given an extended period to repay by the end of January. The company’s controversial borrowings have climbed to MYR42 billion as of March 2014.
1MDB Energy’s assets include those which the parent company bought from Krishnan and <a href="http://www.genting.com/" target="_blank">Genting Bhd</a>.
1MDB paid MYR8.5 billion for Krishnan’s power assets in Malaysia, Egypt, Pakistan and the United Arab Emirates. It bought Genting’s domestic power-generation business for MYR2.3 billion. All in all, 1MDB has 3,112 MW of local generating capacity and 2,482 MW overseas.

1MDB IPO to be delayed

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1MDB IPO to be delayed

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