Malaysia's CIMB not to advise on sale of 1MDB's power assets

CIMB Group announced today that it has been informed by the Ministry of Finance (MOF) that CIMB’s services as adviser to the potential sale of Edra Global Energy Bhd are no longer required.

In a statement last week, CIMB said MOF has decided not to consider a sale of Erda to strategic investors.

Last week, CIMB said it received a letter of appointment to act as adviser to the ministry for the potential sale of Edra, the energy unit of 1MDB Group to strategic investors.

This appointment did not extend to any other areas relating to the 1MDB Group, according to an earlier statement by CIMB, it said.

In a separate statement, MOF clarified that Edra remained focused on and was proceeding with its plans to submit an application for the listing of the business on Bursa Malaysia.

“Edra is advised by Deutsche Bank and Maybank on this transaction. This remains the preferred course of action for the monetisation of these assets, and all relevant stakeholders are committed to ensuring its success.

“In light of the above, the MOF has advised CIMB that its services are no longer required,” it said.