1MDB to finalise bids for Edra, Bandar Malaysia by mid-November

He said the strategic investment company was in the process of negotiating the sale and purchase agreement (SPA) with the three final bidders for Edra Global Energy.

The final bidders are also conducting confirmatory due diligence in key aspects of their proposal and will make the best and final offer after the SPA and the confirmatory due diligence are finalised and completed, he added.

"We expect this to happen in the next two to three weeks. I hope to stand before you again with some good news by year-end in terms of completing the transaction," he said at a rare press conference which lasted one hour, here today.

Arul pointed out that the bids are key aspects of 1MDB's rationalisation plan, which was presented to the Cabinet in June this year.

For Bandar Malaysia, he said 1MDB would sell at least 40 per cent of its equity in Bandar Malaysia Sdn Bhd, which owns 196.68 hectares of land in Sungai Besi.

He said that three out of four bidders shortlisted for the project are very likely to submit their final bids.

"Two of them involve a foreign consortium while another is local. In the next seven to 10 days, we will see the final binding and funded proposal for Bandar Malaysia Sdn Bhd," he added.

Arul said that 1MDB had obtained in principle a planning approval from the Kuala Lumpur City Hall (DBKL) for the development of Bandar Malaysia mixed-use urban development in Sungai Besi.

A lot of potential gross development value could be derived from the project based on the principle planning approval obtained from DBKL, he added.

On its rationalisation plan, he said 1MDB targets a debt reduction of between RM16 billion and RM18 billion from the sale of Edra Global Energy, at least RM11.5 billion from the sale of a portion of its equity in Bandar Malaysia Sdn Bhd and another RM16 billion from debt-to-asset swap with International Petroleum Investment Company.

"Adding all that up, you will see that the debt reduction at 1MDB is up to RM42 billion. And, remember we still own our land in Tun Razak Exchange, Ayer Hitam in Penang (200 acres or 80.94 hectares) and a land in Pulau Indah (318 acres or 128.70 hectares).

"That is why I have always said that the (value of) assets of 1MDB are higher than the debt of 1MDB," he said.

Arul Kanda, who heads 1MDB since January this year, said 1MDB's failure to float its energy companies was the biggest contributor to its cash flow problems.

He said 1MDB acquired debts to generate money and buy assets, but it was unable to service them due to the delayed initial public offering, which was deferred twice in November 2013 and November 2014.