1MDB sells power assets to Chinese firm for US$2.3 bln

November 24, 2015 07:36
Edra Global is the second-biggest independent power producer in Malaysia. Photo: Reuters

Malaysia's 1MDB clinched a deal to sell its energy assets to China General Nuclear Power Corp. (CGN) and its subsidiaries for 9.83 billion ringgit (US$2.3 billion).

It is a key step the scandal-hit state fund is taking to cut its debt, Reuters reported.

1Malaysia Development Bhd, which is at the center of allegations of graft involving Prime Minister Najib Razak, needed to shed assets to pare back its US$11 billion debt pile.

Najib, who chairs the advisory board of 1MDB, has denied any wrongdoing.

"We are extremely impressed by the highly regulated, stable and transparent independent power producer framework in Malaysia, which has given us the confidence to make a long-term investment to the country," He Yu, chairman of state-owned CGN, said in a statement jointly issued by 1MDB and its power unit, Edra Global Energy Bhd, and CGN.

CGN said it will assume all the debt of Edra's companies and the deal is expected to be completed by February.

Edra Global is the largest independent power producer in Bangladesh and Egypt and the second-biggest in Malaysia.

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