By Khairie Hisyam
Two foreign entities separately bidding for 1Malaysia Development Bhd’s (1MDB) power assets may join together in a consortium for the proposed acquisition, sources separately told KINIBIZ.
KINIBIZ understood that the foreign parties are Qatari outfit Nebras Power and China General Nuclear Power Group. The only local bidder for the power assets is Tenaga Nasional Bhd, Malaysia’s single biggest power producer.
According to 1MDB’s books for the financial year ended March 31, 2014 (FY14), the power assets are valued at RM18 billion. However, taking away RM6 billion in debts attached to the power assets, the valuation is closer to RM12 billion based on 1MDB’s accounts.
Late evening on Oct 16, the deadline for bid submissions, 1MDB announced that it had received three “binding, fully funded” offers to purchase its power assets, though it did not specifically disclose the identities of the bidders. Tenaga Nasional issued a statement the same evening saying it had submitted a conditional offer subject to due diligence and other checks.
When previously contacted by KINIBIZ, 1MDB president and group executive director Arul Kanda declined to comment on the identities of the bidders, citing confidentiality agreements.
Headquartered in Doha, Qatar, Nebras Power is an investment outfit controlled by Qatar Electricity & Water Co, Qatar Petroleum International and Qatar Holding. It was established “to invest in feasible and profitable large-scale power and water projects around the world,” according to its website.
China General Nuclear is in turn a state-owned outfit mainly involved in nuclear power plants. Its Hong Kong-listed subsidiary CGN Meiya Power Holdings Co Ltd previously expressed interest in the power assets but later told the stock exchange it is withdrawing from the bid on Oct 9.
1MDB power assets, totalling 13 power plants both domestic and overseas, collectively boast 8,776 megawatts (MW) in total generation capacity.
Some 3,652MW of that come from its five power plants in Peninsular Malaysia, making it the second-largest power producer in Malaysia behind Tenaga Nasional and the single biggest independent power producer just ahead of recently relisted Malakoff Corp Bhd.
However, this excludes its upcoming Track 4B power plant, a yet-to-be-built power plant in Malacca which is said to have up to 2,400MW in generation capacity.
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