KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) is selling its 100 per cent stake in all its energy assets to China General Nuclear Power Corp for RM9.83 billion.
In a statement, the strategic development company said 1MDB, Edra Global Energy Bhd and its subsidiaries have executed a share sale and purchase agreement with China General Nuclear (CGN) and its subsidiaries for the 100 per cent sale of 1MDB’s ultimate ownership in all its energy assets: Edra Solar Sdn Bhd, Edra Energy Sdn Bhd, Powertek Energy Sdn Bhd, Jimah Teknik Sdn Bhd, Jimah O&M Sdn Bhd, Mastika Lagenda Sdn Bhd and Tiara Tanah Sdn Bhd.
“CGN Group will pay, in cash, an equity value of RM9.83 billion and will assume all the relevant gross debt and cash of the Edra operating companies, based on a valuation date as at March 31.
The transaction is expected to be completed in February 2016,” it said.
The company said indicative offers for the energy assets were first received in June 2015 via a rigorous, competitive and international tender process run by 1MDB’s financial adviser, Maybank Investment Bank Bhd.
“Rothschild acted as financial adviser to Edra. The sale is the largest announced merger and acquisition (M&A) transaction in Malaysia and one of the largest in the Asian power sector, year to date.”
1MDB president and group executive director Arul Kanda said the transaction marks the achievement of the first major milestone in the 1MDB rationalisation plan, as presented to the Cabinet of Malaysia on 29 May 2015.
CGN Group was a clear winner in this international tender based on the objectives announced by 1MDB previously, namely value maximisation, acceptable commercial terms and certainty of transaction execution.
“The purchase by CGN Group brings a significant Foreign Direct Investment (FDI) commitment to Malaysia and is a clear vote of confidence in the Malaysian economy,” he said.
Edra president and executive director Datuk Mark Ling said Edra has successfully integrated what was originally 13 power plants across five countries, into one cohesive and strong platform, that practises the highest of international standards.
“I am proud that the value created in our operating assets has been recognised by CGN Group, a major international operator with significant global operations. Edra senior management and staff are committed to continue performing our role as a key independent power producer (IPP) in Malaysia, Egypt, Bangladesh, Pakistan and the UAE,” he said.
Read More : http://www.nst.com.my/news/2015/11/113438/1mdb-sells-edra-china-general-nuclear-power-corp-rm983b
