* China’s CGN Group sweeps in to buy 1MDB power assets
* Deal is biggest foreign direct investment in Malaysia
* Beijing eyeing infrastructure deals in Malaysia, SE Asia-sources
A generous winning bid from a state-owned Chinese firm for a scandal-ridden Malaysian fund’s power assets will help Beijing find favor as it seeks more deals in the country and to extend its influence in Southeast Asia, financial and diplomatic sources say.
China’s Southeast Asia push is widely seen as having come at a perfect time for embattled Prime Minister Najib Razak, whochairs the advisory board of state fund 1MDB and has beengrappling with international probes and public outrage overallegations of graft at the fund.
The $2.3 billion offer from China General Nuclear Corp, a surprise winner in the bidding, and its assumption of $1.8 billion in 1MDB debt will result in Chinese firms having pole positions as key rail, port and road projects come up for grabs, sources said. Read more