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Malaysia Reverses Course on Sale of 1MDB’s $3 Billion Power Arm

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Malaysia scrapped a plan to seek buyers for state investment company 1Malaysia Development Bhd.’s power business, reversing course just a week after saying it appointed a bank to field interest in the assets.

The government, which had hired CIMB Group Holdings Bhd. to run a sale of 1MDB’s Edra Global Energy Bhd. unit, told the bank its services are no longer needed and will push ahead with an IPO of the business, according to statements Wednesday. Bankers seeking roles representing buyers had been speaking to potential bidders from Malaysia, the Middle East and China, people with knowledge of the matter said, asking not to be identified as the information is private.