(MENAFN) Malaysia's Tenaga is taking over debt-hit state fund 1MBD's entire 70 percent stake in a planned 2,000 MW coal-fired power project, which has an estimated cost of USD3.6 billion, Arab News reported.
The move marks the first sale of a power asset by 1Malaysia Development Bhd (1MDB) and comes as the fund plans to cut down its debt of nearly USD11.31 billion that has weighed on Malaysia's credit rating.
The government has approved the takeover of 1MDB's stake in the project, 3B, energy minister told reporters, but declined to disclose the value of the deal, saying the matter is between 1MDB and Tenaga.
The fall in Tenaga, which counts state investor as major shareholder, helped drag down the benchmark stock index 0.5 percent. Japan's Mitsui & Co. owns the balance 30 percent stake in the project.
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