I just published an article about this on 22 November. Read here: Edra Global Energy Global Berhad to be sold to a consortium Today, according to a report in The Star, 1MDB is selling its entire power assets under Edra Global Energy to China General Nuclear Power Corporation (CGN) for RM9.83 bill cash. Yes, CASH. The transaction is expected to be completed in February 2016. There is little need to debate on whether CGN paid too little or too much or even whether 1MDB is selling at a gain or at a loss. The most important on the agenda is that one of the source of uncertainty is now really being removed piece by piece. For the nation as a whole, I think this is a clear gain.
With this, it meant that that rationalisation plan by 1MDB is on track. CGN won because it met the objectives of 1MDB which was to maximise value and this investment also meant a major Foreign Direct Investment commitment into Malaysia. More importantly, CGN’s Chairman of the Board, He Yu said, “This investment represents a major commitment by CGN Group as part of a long-term, global diversification initiative. 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. The CGN Group is a responsible and involved investor.”
I think the attention would now turn to the land related assets of 1MDB. I wish them the best in selling and then disappearing from the radar. Whether they were bad, good or with huge potential, I really do not care. I am a Malaysian and I only want the best for Malaysia. In this case, anything causing uncertainty should be removed. Oh yeah, I believe in the next 5 years, as long as the economy of these countries that Edra operates in continue to grow, rest assured that CGN has bought into the future potential of power. Well, power assets will always be a great one to have. Happy investing in the right energy related counters if you are taking a long term view.
written on 23 Nov 2015
Next suggested article: 486 acre Bandar Malaysia, shortlisted 4 preferred bidders