Hornbill Unleashed

November 1, 2016

CGN may list former 1MDB power assets in 2017

Filed under: Politics — Hornbill Unleashed @ 9:01 PM

China General Nuclear Power Corp, which bought 1MDB’s power assets for USD2.3 billion this year, is considering listing the business as early as 2017.

According to a report in Bloomberg, the state-owned company could raise as much as USD400 million from a Malaysian initial public offering of Edra Global Energy Bhd.

The report quoted people who know about the plan, but who asked not to be named.

Bloomberg said CGN didn’t immediately respond to an e-mail seeking comment.

Edra Global, based in Kuala Lumpur, is the second biggest independent power producer in Malaysia, trailing only Malakoff Corp.

It has 13 electricity projects with a total installed capacity of 6,620 megawatts across Malaysia, Egypt, Bangladesh, the United Arab Emirates and Pakistan, according to CGN’s website.

An Edra Global offering could help provide a boost to the Malaysian equity market after first-time share sales raised just USD270 million this year, the lowest level for any comparable period since 2009, data compiled by Bloomberg show.

However, the people quoted by Bloomberg cautioned, the plan for the listing of Edra Global was preliminary and details could change.

CGN agreed last year to pay RM9.83 billion to buy Edra Global from 1MDB, the Malaysian investment fund that is at the centre of several international investigations into alleged corruption and money laundering. The transaction was completed earlier this year, added the report.

Source : FMT Reporters Online


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