Author: kiasutrader | Publish date: Thu, 5 Nov 2015, 10:27 AM
- The Edge Financial Daily today reported that Tenaga Nasional Bhd (TNB) has put in the lowest bid – at slightly above RM8bil – for Edra Global Energy Bhd’s equity portion.
- This is about 20% lower than the competing bid of ~RM10bil from a foreign consortium. The other bid was jointly submitted by a consortium comprising China General Nuclear Power Corp Ltd and Qatar’s Nebras Power QSC. According to the report, which quoted sources, the two parties had initially come in as separate bids.
- With an estimated net debt of RM8.5bil, the bids would place an enterprise value of RM16.5bil-RM18.5bil for Edra.
- If based on pricing, the report noted that the consortium may have an advantage over TNB to win the tender to buy Edra.
- Note that StarBizWeek said over the weekend that a foreign bidder may win the bid with 1MDB remaining as a sizeable minority to ride on the future upside of Edra.
- Based on our back-of-the-envelope calculations, TNB’s net gearing for FY16F would increase to 0.7x from 0.4x if it were to acquire Edra at RM16.5bil. The final binding bid for Edra is due tomorrow with results expected by year-end.
- In our opinion, we think that the sale of Edra to a foreign party may be positive for TNB as it would not strain TNB’s balance sheet. As at end-Aug, TNB’s net gearing stood at 0.5x.
914601117when TENAGA up, you know your electricity bill WILL gonna to shot up, everything up...transport, cigarettes, vape, tolls, tax, GST and of course credit card balance
sukagtltoday in Utusan.. for Edra: Tenaga bid higher then competing.. which one is true?..
L. C. Chonghttps://lcchong.wordpress.com/2015/11/22/tenaga-annual-report-2015/
wan7075any good news for tenaga? shoot so high today