KUALA LUMPUR, May 2 (Reuters) - Malaysian construction firm IJM Corp Bhd is considering buying Edra Global Energy Bhd, the power assets owned by debt-laden state investment arm 1Malaysia Development Bhd (1MDB), financial weekly The Edge Malaysia reported on Saturday, citing industry sources.
IJM, with a market value of 13 billion ringgit ($3.6 billion), has unofficially expressed interest in acquiring the power assets, the report said, but will need the agreement of its board and institutional investors.
IJM officials were not immediately available to comment.
1MDB, whose advisory board is chaired by Prime Minister Najib Razak, has come under fire from critics including former prime minister Mahathir Mohamad over mismanagement and the 42 billion ringgit ($11.8 billion) debt pile the company has amassed over the past five years.
In March, Malaysia’s finance ministry, which owns 1MDB, appointed the country’s second largest bank by assets, CIMB Group Holdings Bhd, to advise on the sale of Edra Global. It later cancelled the plan.
To pare down its debt, 1MDB is also planning to list Edra Global in an initial public offering expected to fetch $3 billion, the company has said previously.
A financial source who has knowledge of the IPO told Reuters on Saturday he had no knowledge of IJM’s interest in buying Edra Global but said Edra was on track for listing and could file its IPO application later this month. (Reporting By Yantoultra Ngui; Editing by Paul Tait)