Malaysia's Tenaga completes takeover of 1MDB stake in planned US$3.6b power plant

[KUALA LUMPUR] Tenaga Nasional Bhd, Malaysia's largest electricity utility, said on Thursday it has completed the purchase of debt-laden state fund 1MDB's 70 per cent stake in Jimah East Power Sdn Bhd for RM46.98 million.

Malaysia's government in June said it had approved the takeover of Jimah, which won a contract to develop a 2,000 megawatt coal-fired power plant estimated to cost US$3.6 billion.

Tenaga's purchase will increase its electricity generation market share to 57.7 per cent from 53.3 per cent by 2020, a previous stock exchange filing showed.

Japan's Mitsui & Co Ltd owns the remaining 30 per cent of Jimah.

REUTERS