July 5, 2013 / 7:27 AM / in 5 years

Malaysia's 1MDB pays $380 mln for control of local power plant firm

KUALA LUMPUR, July 5 (Reuters) - Malaysia’s state-owned strategic development company 1Malaysia Development Bhd (1MDB) said it would pay around $380 million to take control of a local coal power plant firm, its third utility deal.

The 1.2 billion ringgit deal for 75 percent of Jimah Energy Ventures follows last year’s acquisitions of power assets from Malaysia’s second richest man, Ananda Krishnan, and gaming-to-plantations group Genting Bhd for a combined 10.8 billion ringgit.

“The acquisition is supported by Jimah’s strong cash flows backed by a 25-year power purchase agreement expiring in 2033,” 1MDB said in a statement on Friday.

Jimah Energy Ventures is 80 percent owned by the Negri Sembilan royal family while the remaining 20 percent is held by Tenaga Nasional Bhd, the country largest power utility.

The Jimah coal-fired power plant is comprised of two 700 Megawatt units.

The transaction is subject to customary financing and regulatory approvals, 1MDB said. ($1 = 3.1827 Malaysian ringgit) (Reporting by Yantoultra Ngui; Editing by Edwina Gibbs)

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