KUALA LUMPUR, Oct 17, 2015:

Tenaga Nasional Bhd (TNB) has submitted a conditional offer to acquire the power generation assets of Edra Global Energy Bhd from 1Malaysia Development Bhd (1MDB).

The conditional offer is subject to TNB finalising the confirmatory due diligence process as well as finalising and executing the share purchase agreement.

1MDB must also provide further information on operations while no assurance transaction would be concluded as final offer subject to independent and third-party evaluation.

In a filing to Bursa Malaysia, TNB president and chief executive officer Datuk Seri Azman Mohd said, as the sole off-taker of all power generated in Malaysia, it was the best and most logical buyer for these assets.

“The acquisition of these power facilities, which will add a significant contribution to our power generation capacity in Malaysia, will be an important addition to our business as it will further enhance the company’s earnings and cash flow.

“Broadening our domestic and overseas power generation base gives us more opportunities for revenue growth and adding significant shareholder value.”

Furthermore, TNB said following its in-depth due diligence, Edra’s power generation assets would be a strong fit for its growth strategy domestically and internationally.

The utility giant said the combination would ensure the long-term continuity of steady and competitively priced power to domestic customers and consumers, and enabled it to pursue its strategy of establishing a footprint in international markets where growth in power demand is increasing.

Yesterday, TNB said it has ceased to be part of the consortium to develop the 1,000-1,400MW combined cycle power plant (Track 4A), as the Energy Commission (ST) has rejected the proposal submitted by the consortium.

The proposal submitted on May 15 by TNB and SIPP Energy Sdn Bhd was rejected because the levelised tariff could not meet ST’s terms in the conditional letter of award, TNB said in a statement.

Under the consortium, TNB and SIPP Energy are expected to develop the Track 4A project in Pasir Gudang, Johor.

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