1MDB buys over billionaire Ananda Krishnan’s power assets

PETALING JAYA: The power assets of billionaire T. Ananda Krishnan have been sold to 1Malaysia Development Bhd (1MDB) the biggest power asset sale in the country, and probably in the region.

Sources familiar with the deal said the parties had signed the sale and purchase agreement last Friday but they could not reveal the price.

However, they indicated that it was in the range of between US$3.2bil (RM9.92bil) and US$3.6bil (RM11.16bil).

Last month, Ananda had put up for sale all his power assets held via Tanjong Energy Group, which owns and operates eight power plants with investments in five power plants in Malaysia, Egypt, Bangladesh, Pakistan, Sri Lanka and the United Arab Emirates.

Together, they have a total net generating capacity of 3,951MW.

The sale had attracted 12 local and international bidders.

It is not clear as to why Ananda is selling his power assets, but 1MDB sees power as a strategic sector to ensure sustainable long-term earnings growth. There would be a need to invest and expand as well.

More importantly, the sale of the power assets to a Malaysian company ensures that control remains within the country, given that power is a strategic sector and the security and reliability of power supply for long-term economic development is critical.

very kuat makan by our gov [You must be registered and logged in to see this image.] +1

wanna run with tons of money before GE