Malaysia’s 1MDB Said Close to Buying Tanjong Power Assets for $3.2 Billion
1Malaysia Development Bhd., the state investment company also known as 1MDB, agreed to buy billionaire T. Ananda Krishnan’s power assets for about $3.2 billion, two people with knowledge of the matter said.
1MDB agreed to purchase the assets after resolving technical issues related to the deal, said the people, who declined to be named as the process is private. 1MDB plans to finance the purchase through bank loans, one of the people said.
As many as four groups including Saudi Water & Electricity Co. were put on a shortlist to bid for the 13 power plants that the tycoon owned through Tanjong Plc, people familiar with the deal said on Feb. 28.
The sale marks the second major divestment in a year by Ananda Krishnan, Malaysia’s second-richest man according to Forbes magazine. He sold Tanjong’s gaming business, Pan Malaysian Pools Sdn., for 2.1 billion ringgit ($696 million) last year to a group of businessmen including Genting Bhd. Chairman Lim Kok Thay, two people familiar with the matter said at the time.
1MDB’s communications head Robert Ho didn’t respond to calls seeking comment on the deal. Tanjong’s Chief Financial Officer Gerard Nathan declined to comment.
Tanjong Energy has assets of 9.3 billion ringgit with power plants in countries including Malaysia, Egypt, Pakistan and United Arab Emirates, according to its website. The company posted net income of 514 million ringgit on sales of 2.54 billion ringgit for the fiscal year that ended Jan. 31, 2011.