MoF scraps sale plan, reverts to IPO plan for 1MDB

Image from 1MDB homepage

The Ministry of Finance Malaysia (MoF) has called off plans to sell 1Malaysia Development Bhd’s (1MDB) energy unit, and will return to its original plan to list Edra Global Energy Bhd in an initial public offering on the Malaysian stock market.

This decision comes a week after the MoF appointed CIMB Group Holdings to act as adviser for the “competitive” sale of Edra to strategic investors.

The banking group said in a statement that “CIMB has been informed by the Ministry of Finance that the MoF has decided not to consider a sale of Edra to strategic investors and as such, CIMB’s services as adviser to the potential sale are no longer required”.

CIMB was initially appointed to identify potential buyers and run a competitive bidding for Edra.

In a separate statement, the finance ministry said Edra is proceeding with plans to submit an application to list on the Malaysian stock exchange.

“This remains the preferred course of action for the monetisation of these assets,” the finance ministry said. Deutsche Bank AG and Malayan Banking Bhd are advising Edra on the transaction, it said.

State investment firm 1MDB is preparing to re-submit an application by May for an IPO of Edra that could raise as much as $3 billion.

1MDB, whose advisory board is headed by Prime Minister Datuk Seri Najib Razak, announced plans in February to dismantle its assets after it drew criticism from lawmakers for rising borrowings that totalled MYR41.9 billion as of March 2014.

Its ability to service its debt was put in question after it delayed payment of a loan of MYR2 billion by about three months.

Also read:

1MDB could opt to sell power assets, call off IPO

1MDB makes payment on dollar debt, goes under probe

1MDB energy IPO still possible, to resubmit application by May

 

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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.