CGN consortium close to power deal in Malaysia

Qatar's Nebras Power QSC is in talks to partner with China General Nuclear Power Corp in the bidding for 1Malaysia Development Bhd's power business, people with knowledge of the matter said, potentially pitting a foreign consortium against Malaysia's biggest listed energy producer.

The overseas bidders have expressed willingness to pay a higher price for the state investment company's Edra Global Energy Bhd unit than Malaysia's Tenaga Nasional Bhd, the people said, asking not to be identified as the negotiations are private. Tenaga, a Kuala Lumpur-listed utility controlled by the nation's sovereign fund, is wary of overpaying because it needs to justify any acquisition to shareholders, one person said.

The Malaysian ringgit has fallen about 19 percent this year, turning it into the worst-performing currency in Asia and making it cheaper for foreign bidders to buy the 1MDB power plants. Investor fears are easing that Tenaga will be told to perform "national service" by acquiring assets from 1MDB at an inflated price, said Ang Kok Heng, who helps manage $630 million as chief investment officer at Phillip Capital Management Bhd in Kuala Lumpur.