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Malaysia's CIMB says no longer advising on sale of 1MDB power unit
[KUALA LUMPUR] CIMB Group Holdings Bhd, Malaysia's second-largest bank by assets, said on Wednesday it is no longer advising on the sale of power firm Edra Global Energy Bhd, owned by indebted state fund 1MDB, to strategic investors.
"CIMB has been informed by the ministry of finance that the ministry has decided not to consider a sale of Edra to strategic investors and as such, CIMB's services as adviser to the potential sale are no longer required," CIMB said in a press statement.
The announcement comes only a week after CIMB said it was appointed the adviser for the sale of Edra Global. 1MDB, or 1Malaysia Development Bhd, was also planning to list Edra Global in an initial public offering expected to fetch US$3 billion, sources have said, a move proposed to help reduce a debt pile of US$11.6 billion.