Kota Marudu Member of Parliament

Parliament: Edra Sale Won't Affect National Energy Industry - Ongkili

KUALA LUMPUR -- 1Malaysia Development Bhd's (1MDB) decision to sell its subsidiary Edra Global Energy Bhd to China General Nuclear Power Corporation (CGN Group) will not affect Malaysia's energy industry, the Dewan Rakyat heard Tuesday.

Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili said the 100 per cent equity sale of Edra Global accounts for only 14 per cent of total power generation in the country.

"The government has agreed to the equity disposal as it is part of the transformation in the country's energy sector.

"We feel everything is guaranteed because it (the sale) only involves a total equity of 14 per cent.

"We still have about 50 per cent of the country's energy production under Tenaga Nasional Bhd (TNB) and 20 per cent from Malakoff," he said in reply to Sim Tze Tzin (DAP-Bayan Baru) and Datuk Mahfuz Omar (PAS-Pokok Sena).

Ongkili said the government still has control over the disposed strategic national asset through legislation and the issuance of licences to produce electricity.

Yesterday, 1MDB through Edra Global signed a share sale and purchase agreement with CGN Group for the 100 per cent sale of its power assets valued at RM9.83 billion.

The takeover by CGN will consist of Edra Edra Solar Sdn Bhd, Edra Energy Sdn Bhd, Powertek Energy Sdn Bhd, Jimah Teknik Sdn Bhd, Jimah O&M Sdn Bhd, Mastika Lagenda Sdn Bhd and Tiara Tanah Sdn Bhd.

The deal is Malaysia's largest merger and acquisition transaction and among the largest in the Asian power sector.

 

Source - Malaysian Digest