Malaysian govt firm buys Tanjong Energy for $2.8B

1Malaysia Development Bhd had acquired Tanjong Energy for US$2.81 billion.

The state-owned strategic development firm, 1Malaysia sAnanda igned a definitive agreement last Friday on the equity purchase, and that the transaction is now subject to customary financing and regulatory approvals.

"The acquisition signals the first step towards fulfilling 1MDB's strategic intent towards fulfilling the country's long-term energy security," 1MDB CEO Shahrol Halmi said in a statement.

"We are attracted to the strong operating track record of Tanjong Energy, its well-diversified portfolio of quality assets, its strong in-house capabilities and the potential for new growth both here and abroad," he added.

Shahrol said 1MDB aimed to "enhance the capacity of Tanjong Energy as a leading emerging market independent power producer."

Ananda Krishnan, reckoned by Forbes to have assets of $9.5 billion, owns his power assets through Tanjong Energy, which owns and operates eight power plants and has investments in five in Bangladesh, Egypt, Malaysia, Pakistan, Sri Lanka and the United Arab Emirates, with a total net generating capacity of 3,951 MW.

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