1Malaysia Development Bhd's (1MDB) energy arm, Edra Global Energy Bhd, is disposing of all its assets to China General Nuclear Power Corp and its units (CGN group) for RM9.83 billion, making it the largest merger and acquisition deal in the Asian power sector year to-date.
The transaction, which is expected to be completed in February 2016 is also a major milestone in the 1MDB rationalisation plan, as presented to the Malaysian Cabinet on May 29, 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," said 1MDB's President & Group Executive Director, Arul Kanda, in the joint statement today.
The purchase by CGN Group brings a significant foreign direct investment commitment to Malaysia and a clear vote of confidence in the economy, he said.
1MDB, Edra and its subsidiries have executed share sale and purchase agreements with CGN Group for the 100 per cent sale of 1MDB’s ultimate ownership in all its energy assets, namely, 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 (Edra operating companies).
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, 2015.
The statement said indicative offers for the Edra operating companies 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.
"This investment represents a major commitment by CGN Group as part of a long-term, global diversification initiative," its Board Chairman He Yu said.
He said the group was extremely impressed by the highly regulated, stable and transparent independent power producer framework in Malaysia, which has given the firm the confidence to make a long-term investment to the country.
"The CGN Group is a responsible and involved investor. We will work closely with Edra, a Malaysian-based and Malaysian run global platform, and together, will take it to the next level," he said.
Most important of all, CGN Group will ensure uninterrupted power supply, using environmentally-friendly technologies and adhere to the fixed terms of the respective power purchase agreements, for the benefit of the people of Malaysia, he said.
Bernama
Mon Nov 23 2015
The transaction, which is expected to be completed in February 2016 is also a major milestone in the 1MDB rationalisation plan, as presented to the Malaysian Cabinet on May 29, 2015. - Filepic
The battle to reduce road deaths
In Malaysia, over half a million road accidents have been recorded so far this year.
Pro-Palestinian NGOs seek court order to stop Dutch arms exports to Israel
The Dutch state, as a signatory to the 1948 Genocide Convention, has a duty to take all reasonable measures at its disposal to prevent genocide.
How quickly can Trump's Musk-led efficiency panel slash US regulations?
Moves by Trump and his appointees to eliminate existing rules will be met with legal challenges, as many progressive groups and Democratic officials have made clear.
2TM: Consultations on PTPTN loans, admission to IPTA at MOHE booth
Consultations on PTPTN loans and admission to IPTA are among services provided at the Higher Education Ministry booth.
Kampung Tanjung Kala residents affected by flooded bridge every time it rains heavily
Almost 200 residents from 60 homes in Kampung Tanjung Kala have ended up stuck when their 200-metre (m) long concrete bridge flooded.
COP29 climate summit draft proposes rich countries pay $250 billion per year
The draft finance deal criticised by both developed and developing nations.
Bomb squad sent to London's Gatwick Airport after terminal evacuation
This was following the discovery of a suspected prohibited item in luggage.
Kelantan urges caution amidst northeast monsoon rains
Kelantan has reminded the public in the state to refrain from outdoor activities with the arrival of the Northeast Monsoon season.
Former New Zealand PM Jacinda Ardern receives UN leadership award
Former New Zealand prime minister Jacinda Ardern was given a global leadership award by the United Nations Foundation.
ICC'S arrest warrants for Netanyahu, Gallant an apt decision - PM
The decision of the ICC to issue arrest warrants against Benjamin Netanyahu and Yoav Gallant is apt, said Datuk Seri Anwar Ibrahim.
KTMB provides two additional ETS trains for Christmas, school holidays
KTMB will provide two additional ETS trains for the KL Sentral-Padang Besar route and return trips in conjunction with the holidays.
BNM'S international reserves rise to USD118 bil as at Nov 15, 2024
Malaysia's international reserves rose to US$118.0 billion as at Nov 15, 2024, up from US$117.6 billion on Oct 30, 2024.
Findings by dark energy researchers back Einstein's conception of gravity
The findings announced are part of a years-long study of the history of the cosmos focusing upon dark energy.
NRES responds to Rimbawatch press release on COP29
The Ministry of Natural Resources and Environmental Sustainability (NRES) wishes to offer the following clarifications to the issues raised.
Online Safety Bill and Anti-Cyberbullying Laws must carefully balance rights and protections
The Online Safety Advocacy Group (OSAG) stands united with people in Malaysia in the fight against serious online harms.
Malaysia's inflation at 1.9 pct in Oct 2024 - DOSM
Malaysia's inflation rate for October 2024 has increased to 1.9 per cent, up from 1.8 per cent in September this year.
Saudi Arabia showcases Vision 2030 goals at Airshow China 2024
For the first time, Saudi Arabia is participating in the China International Aviation & Aerospace Exhibition held recently in Zhuhai.
King Charles' coronation cost GBP 71mil, govt accounts show
The coronation of Britain's King Charles cost taxpayers GBP72 million (US$90 million), official accounts have revealed.
Couple and associate charged with trafficking 51.9 kg of meth
A married couple and a man were charged in the Magistrate's Court here today with trafficking 51.974 kilogrammes of Methamphetamine.
PDRM to consult AGC in completing Teoh Beng Hock investigation
The police may seek new testimony from existing witnesses for additional insights into the investigation of Teoh Beng Hock's death.