KUALA LUMPUR: Shares of Tenaga Nasional Bhd
(TNB) surged to a high of RM13.70 on Thursday following news that it has put submitted the lowest bid for Edra Global Energy Bhd.
The news buoyed well with many as the utility giant may not be chosen by 1Malaysia Development Bhd (1MDB). TNB’s share price has been under pressure due to the perceived bailout of 1MDB. Analysts said bailout fears have lingered since 1MDB revealed that it was looking for buyers for its power assets.
At 12.30pm, it was up 88 sen to RM13.52. There were 17.90 million shares done at prices ranging from RM12.74 and RM13.70.
The FBM KLCI rose 7.67 points or 0.46% to 1,693.29. Turnover was 1.22 billion shares valued at RM941.47mil. There were 355 gainers, 375 losers and 355 counters unchanged.
On Wednesday, TNB reportedly submitted the lowest bid for Edra Global Energy Bhd. TNB valued the energy assets at slightly above RM8bil, making the bid about 20% lower than the closest competing bid from a foreign consortium.
According to reports, Qatar’s Nebras Power QSC was currently in talks to partner with China General Nuclear Power Corp (CGN) in the bidding for 1MDB’s power assets.
1MDB said the sale Edra has received three final, fully funded and binding bids without stating the names of the bidders.
The sale of Edra Global power assets, valued at RM18bil in its books, is part of 1MDB’s rationalisation plan to reduce its debts of close to RM42bil.
Edra Global, the power generation unit of 1Malaysia Development Bhd (1MDB) was supposed to have been listed on the local bourse between January and March this year.
1MDB withdrew its submission seeking a listing of Edra Global after failing to meet Securities Commission requirements in the first week of March this year.
Since then, 1MDB has been looking at a sale of Edra Global and is said to have hired Maybank Investment Bank Bhd for the international sale process.
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