Malaysia's Ananda Krishnan's Tanjong Energy attracts 12 bids

T Ananda Krishnan's Tanjong Energy has attracted 12 preliminary international and local bids, the power portfolio that Malaysia's second-richest man has put up for sale and expects to fetch more than $3 billion, the Star newspaper over the weekend reported, citing unidentified sources.

Krishnan, estimated to have a net worth of $9.6 billion and the founder of Malaysia's largest cellular phone company Maxis Bhd, owns his power assets through Tanjong Energy.

The paper said that 18 parties had a look at the assets and three would be shortlisted for the final round.

''After the second round of bidding, about three parties will be shortlisted. They will then have to make a binding offer and show proof of funding,'' a source told the paper.

The local bidders included a joint bid from IMalaysia Development Bhd and CIMB/Employees Provident Fund, but the highest bid of 10.85 billion Malaysian ringgit ($3.60 billion) was from Saudi Water & Electricity Co, the newspaper added.

According to Malaysian laws, a foreign company will have to team up with a local firm to operate the Malaysian power assets.

Standard Chartered had been hired to run the sale of eight wholly-owned investments in five power plants in Malaysia, Egypt, Bangladesh, Pakistan, Sri Lanka and the United Arab Emirates with a net generating capacity of 3,951 MW, and a water desalination plant with a capacity of 16 million imperial gallons per day. (See: Ananda Krishnan, Malaysia's second-richest man, to sell power portfolio worth $2 bn)

In Malaysia, Tanjong Energy owns and operates three power plants with a total generating capacity of 1,490 MW, making it the second largest independent power producer in the country.

It is also the largest independent power producer in both Egypt and Bangladesh. In Egypt, the company owns and operates three power plants with a total generating capacity of 2,048 MW, while in South Asia, it owns and operates two power plants and has investments in four power plants in Bangladesh, Pakistan and Sri Lanka with a total installed capacity of 1,127 MW.

Tanjong Energy is also part of a consortium that owns and operates the Taweelah B Independent Water and Power Project in Abu Dhabi, the UAE.

The revenues of Tanjong Energy are mainly derived from the available capacity and electrical energy produced by its power plants to the off-taker under their respective power purchase agreements.