Malaysia’s 1MDB targets energy assets sale at $3.4b-$4.6b: Report

Power plant visual from company website

Malaysian state fund 1Malaysia Development Berhad (1MDB) is reportedly pricing its energy assets at between $3.44 billion and $4.58 billion, a sum that would help the fund pare its hefty debts.

The fund is currently undergoing the due diligence process with shortlisted bidders for the sale of its 13 energy assets within its unit Edra Global Energy Berhad, Infrastructure Investor reported on Monday.

Deputy finance minister of Malaysia Johari Abdul Ghani has confirmed with the news website: “We are looking at the range of valuation from MYR15 billion ($3.44 billion) to MYR20 billion ($4.58 billion) for the power asset sale.”

He also confirmed that there are three international bidders and one local bidder involved, although he did not identify the parties.

Ghani also said an official announcement of shortlisted bidders is expected by end of October.

So far, there are four unconfirmed shortlisted bidders for the asset sale – Saudi Arabia’s ACWA Power International, Qatar’s Nebras Power QSC, Hong Kong-listed CGN Meiya Power, and Malaysian state-owned power company, Tenaga Nasional Berhad.

Last week, ACWA Power International came out denying media reports that it had submitted its final offer for 1MDB’s power plants.

In a statement, ACWA said, it was interested in participating in a transparent process for the transaction, but confirmed that it was “not invited by 1MDB to make any final offer, nor are we on a shortlist of bidders for the same.”

Nebras Power didn’t respond to Infrastructure Investor’s e-mailed queries, while CGN Meiya Power confirmed that it had been involved in preliminary discussions to acquire 1MDB’s energy assets, according to a recent filing to the Hong Kong Stock Exchange.

Tenaga Nasional’s president and CEO Seri Azman Mohd said today the company is in the midst of carrying out the due diligence process.

The deadline for the bidders for non-binding offers is October 16.

1MDB is Malaysia’s second-largest independent power producer and the largest in Bangladesh and Egypt. Its power unit Edra Energy has five domestic and eight international power plants with total capacity of 5.5 gigawatts that are estimated to be worth MYR12 billion ($2.75 billion) collectively.

The beleaguered fund is working on its rationalisation plan, to reduce its $11 billion of debt to a manageable level before the year ends. Thus far, 1MDB has started commercialising its land assets, calling for developers to bid for the Bandar Malaysia project, and just last week, announced the sale tender process for its 318-acre land parcel in Pulau Indah.

The Edge Financial Daily reported last week that Lembaga Tabung Angkatan Tentera (LTAT) is said to be keen on taking part in the multibillion-ringgit Bandar Malaysia development, according to sources.

“There is no decision yet on those shortlisted for the development, but LTAT will be involved,” the source said. However, the role that the Armed Forces Fund would play in the development of Bandar Malaysia was not clear. Bandar Malaysia is where the former Sungai Besi airbase was previously located.

Also read: 1MDB shortlists investors for Edra, confident of an agreement by Q4

Tenaga Nasional to take 1MDB’s 70% stake in Project 3B

Malasian fund 1MDB launches sale process for Pulau Indah land parcel

Malaysia’s 1MDB says not contacted by foreign investigators

FBI probes Malaysia’s beleaguered 1MDB Fund on money laundering allegations: Report

Abu Dhabi claims another $1 billion from 1MDB missing: Report

Malaysia’s 1MDB denies Abu Dhabi’s IPIC pulling out of debt plan

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.