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1MDB to Purchase Tanjong’s Power Assets

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The Government of Malaysia wholly owns 1 Malaysia Development Berhad (1MDB) a strategic development enterprise. The entity is funded by debt guaranteed by the Malaysian federal government. 1MDB is planning to buy Tanjong Energy Holdings for RM 8.5 billion (US$ 2.82 billion). Energy infrastructure assets are in high demand for large state-owned enterprises and sovereign investors. Power generating assets can provide steady cash flow. They are however dependent on state-awarded concessions and power purchase agreements. IMDB beat out a number of international bidders including the Saudi Water & Electric Co.

Tanjong Energy owns and operates nine power plants in:

  • Bangladesh
  • Egypt
  • Malaysia
  • Small JVs in Sri Lanka, Pakistan, and the United Arab Emirates

Tanjong’s power assets create about RM1 billion in annual earnings with about 50% derived from Malaysian power plants. 1MDB invested RM 4.2 billion in a joint venture dubbed 1MDB PetroSaudi Limited with PetroSaudi International Ltd. for an oil exploration project. Within six months, 1MDB converted its 40% interest into an eleven year loan. This clearly affected the cash levels from the newly created 1MDB.

Mergermarket Gets Ready to be Sold

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Private equity firm BC Partners hired Goldman Sachs Group Inc. and JPMorgan Chase & Co. to advise on the sales of Acuris. Acuris is a collection of financial news and data sites, which includes Mergermarket, Dealreporter, and Debtwire. In 2017, BC Partners sold around a 30% stake in GIC Private Limited.

Before the rebranding to Acuris, Mergermarket was part of The Financial Times Group until 2013 when it was sold off to BC Partners.

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Why Japan Post Sees Promise in Aflac

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Aflac Inc. is an American insurance company founded in 1955. The company is the biggest provider of supplemental insurance in the United States. Aflac also has major operations in Japan.

In December 2018, Japan Post Holdings (JPHLF) signaled it was spending US$ 2.64 billion for a 7-8 % stake in Aflac. The goal is that, in four years time, Aflac will become an affiliate of Japan Post. Japan Post hopes to accomplish this by becoming the largest voting shareholder of the company. The world’s 13th largest company, with 400,000 employees, Japan Post needs to expand to chase further growth, mainly because Japan Post expects the postal business to decline. Diversification is seen as the optimal route to long term stability for the holding company. Japan’s economy is worrying. Japan’s aging population means that many insurance companies are facing a shrinking customer base, Japan Post settled on a plan to expand overseas.

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RDIF and Development Agency of Serbia Agree to Explore Joint Investments

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The Russian Direct Investment Fund (RDIF) and the Development Agency of Serbia, also known as Razvojna agencija Srbije, reached an agreement to work together to identify attractive investment projects to strengthen bilateral economic ties and increase investment flows between Russia and Serbia. Russian capital and businesses are keen on investing in Serbia.

In addition, the two countries signed an agreement to cooperate on civil nuclear energy, according to state-owned Russian reactor builder Rosatom (Rosatom State Nuclear Energy Corporation). Rosatom continues to expand it business of nuclear cooperation deals in a wide number of countries.

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