1MDB to revise, resubmit power arm IPO application, cites "material developments"

PETALING JAYA: 1Malaysia Development Bhd's (1MDB) said it will have to resubmit the initial public offering (IPO) application of its power arm, Edra Global Energy Bhd, to the Securities Commission Malaysia (SC).
In a statement yesterday, its president and group executive director, Arul Kanda, announced that in line with the conclusion of 1MDB's strategic review, certain material developments have occurred in relation to Edra Global Energy.
"These include, amongst others, the proposed conversion of an advance by 1MDB into RM2 billion of equity in Powertek Investment Holdings Sdn Bhd (an operating subsidiary of Edra) and for Edra to focus on its existing projects."
"In view of these developments, Edra has notified the SC) of its intention to revise, update and re-submit the documentation previously submitted to the SC in connection with the proposed listing of Edra on the Main Market of Bursa Malaysia Securities Bhd," it said.
The Energy Commission chairman Abdul Razak Abdul Majid said on Tuesday they would know next week if 1MDB will continue with the Jimah East Coal Power Plant , following expected delays in the project.
Association of Water and Energy Research Malaysia (Awer) has estimated that a six month delay in Jimah East 2000MW power plant construction will cause additional RM 643.94 million in fuel cost and has long called for the cancellation of the award to 1MDB and for a new competitive bidding be called for a Combined Cycle Gas Turbine (CCGT) power plant.
IMDB is reportedly planning to list Edra Global Energy in a RM10.8 billion offering that would be Malaysia's biggest since Felda Global Ventures Holdings Bhd went public in 2012.
Edra Energy's IPO was scheduled to be in the first quarter of this year. Arul did not give a new timeline for the IPO.
As of March 2014, 1MDB debts had reached RM41.9 billion as of March 2014, according to the firm's annual report.
Edra Energy is one of South East Asia's leading international independent power producers with a portfolio of 15 power and desalination plants in five countries with an effective power generation capacity of about 5,594MW.