1Malaysia Development Bhd. is nearing an agreement to sell control of its power business to a Chinese-led bidding group, part of the state investment company’s plan to wind down its operations, people with knowledge of the matter said.
An agreement with the consortium, which includes China General Nuclear Power Corp. and Qatar’s Nebras Power QSC, may be announced as soon as this weekend, the people said. The deal could value 1MDB’s Edra Global Energy Bhd. unit at about 10 billion ringgit ($3.2 billion), trumping a rival offer from Malaysian energy producer Tenaga Nasional Bhd., the people said, asking not to be identified as the information is private.
The Malaysian ringgit has dropped about 19% this year, turning it into the worst-performing currency in Asia and making it cheaper for foreign bidders to buy the 1MDB power plants. Tenaga, a Kuala Lumpur-listed utility controlled by the nation’s sovereign fund, is wary of overpaying because it needs to justify any acquisition to shareholders, people with knowledge of the matter said earlier this month.
The deal would be conditional on the CGN consortium being able to obtain at least 50% of the business, according to one of the people. An agreement hasn’t been signed yet and talks could still fall apart, the people said.
Rising Debt
A representative for China General Nuclear didn’t immediately respond to an e-mail seeking comment, while a spokeswoman for Tenaga declined to comment. Nebras didn’t answer e-mails and phone calls seeking comment outside of regular business hours, while calls to its controlling shareholder Qatar Electricity & Water Co. also went unanswered.
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An agreement with the consortium, which includes China General Nuclear Power Corp. and Qatar’s Nebras Power QSC, may be announced as soon as this weekend, the people said. The deal could value 1MDB’s Edra Global Energy Bhd. unit at about 10 billion ringgit ($3.2 billion), trumping a rival offer from Malaysian energy producer Tenaga Nasional Bhd., the people said, asking not to be identified as the information is private.
The Malaysian ringgit has dropped about 19% this year, turning it into the worst-performing currency in Asia and making it cheaper for foreign bidders to buy the 1MDB power plants. Tenaga, a Kuala Lumpur-listed utility controlled by the nation’s sovereign fund, is wary of overpaying because it needs to justify any acquisition to shareholders, people with knowledge of the matter said earlier this month.
The deal would be conditional on the CGN consortium being able to obtain at least 50% of the business, according to one of the people. An agreement hasn’t been signed yet and talks could still fall apart, the people said.
Rising Debt
A representative for China General Nuclear didn’t immediately respond to an e-mail seeking comment, while a spokeswoman for Tenaga declined to comment. Nebras didn’t answer e-mails and phone calls seeking comment outside of regular business hours, while calls to its controlling shareholder Qatar Electricity & Water Co. also went unanswered.
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