Tycoon Ananda Krishnan has sold his power generation assets to 1 Malaysia Development Bhd (1MDB) for RM8.5 billion.

The sovereign wealth fund beat a host of international bidders, including Saudi Arabia’s Saudi Water & Electric Co, to take control of Tanjong Energy Holdings in a deal signed late last Friday, financial executives involved in the deal told the daily.

The sale of Tanjong Energy is part of a corporate overhaul which will also see Ananda sell his satellite business in the coming weeks to finance a push into gas exploration in Southeast Asia, the ST also said, quoting executives who are close to the industrialist.

Rather than own power assets, which are heavily dependent on medium-term state-awarded concessions and power purchase agreements (PPA), Ananda is betting that there is more money to be made in the supply of gas required to run the power plants, the executives said.

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