Malaysia's 1MDB agrees sale of power assets to China firm for $3.3billion

KUALA LUMPUR - Malaysia's 1MDB has agreed to sell all its energy assets to China General Nuclear Power Corporation (CGN) and its subsidiaries for 9.83 billion ringgit (S$3.3 billion), a key step in the embattled state fund's drive to cut its debts.

1Malaysia Development Bhd (1MDB), its power unit, Edra Global Energy Bhd, and CGN said in a joint statement on Monday that they had completed a share sale and purchase agreement for the 100 percent sale of 1MDB's ownership of its energy assets. CGN will assume all the debt of Edra's companies.

"CGN Group was a clear winner in this international tender, based on the objectives announced by 1MDB previously, namely value maximisation, acceptable commercial terms and certainty of transaction execution," Arul Kanda, 1MDB's president said in the statement.

1MDB, currently at the centre of allegations of graft involving Prime Minister Najib Razak, needs to shed assets to pare back US$11 billion (S$15.6 billion) in debt. Najib, who chairs the advisory board of 1MDB, has denied any wrongdoing.