DID THE GOVERNMENT FUND 1MDB TO ACQUIRE BOTH THE IPPs?

As promised in my earlier posting, I did mention that I will share with you information on how much did 1MDB pay to acquire both the IPPs or as claimed by the opposition did the Government used its money to help 1MDB  in making the acquisition.

Here it goes,

1MDB bought Tanjong for RM8.5 billion and GentingSanyen for RM2.59 billion.

The next question would then be, how did 1MDB came up with the evaluation;

1MDB reviewed the operational and financial projections with the vendor, using traditional valuation methodology including discounted cashflow, precedent transactions and trading analysis. Besides that, 1MDB also conducted Internal Rate of Return and operating scenario analysis and reviewed similar regional transactions.  

Eventually, now you will be asking, how did 1MDB fund the acquisitions? The answer is, a combination of local financing and equity.

And, ladies and gentleman - NO, the acquisitions were not guaranteed by the Government, in simple terms, It is a private deal without government money or guarantee.

In my next posting, I will share information if 1MDB has the experience to manage the IPPs and why did 1MDB purchase the IPPs whne the PPA is close to expiry.