Under the terms of the deal, CGN Group will acquire 1MDB’s energy assets including Edra Solar, Edra Energy, Powertek Energy, Jimah Teknik, Jimah O&M, Mastika Lagenda and Tiara Tanah (Edra operating companies).
Edra president & executive director Dato’ Mark Ling said: "Edra has successfully integrated what was originally 13 power plants across five countries, into one cohesive and strong platform, that practices the highest of international standards.
"Edra senior management and staff are committed to continue performing our role as a key independent power producer (IPP) in Malaysia, Egypt, Bangladesh, Pakistan and the UAE."
CGN will also assume all the relevant gross debt and cash of the Edra operating companies. The acquisition is a part of the company’s long-term, global diversification initiative.
1MDB said that the deal marks first major milestone in its asset rationalization plan, which was presented on 29 May 2015 to the Cabinet of Malaysia.
The rationalization plan involves a sale of equity in Edra Energy, a sale of equity in Bandar Malaysia, sale of master-planned land in TRX and disposal of non-core assets, among others.
Proceeds from the rationalization plan will be used by 1MDB to reduce its debt to a sustainable and manageable level by Q4 2015.
1MDB president and group executive director Arul Kanda said: "We are pleased to announce this significant milestone of the Edra monetization process.
"CGN Group was a clear winner in this international tender, based on the objectives announced by 1MDB previously, namely value maximization, acceptable commercial terms and certainty of transaction execution."
The transaction is planned to be completed in February 2016.
