KUALA LUMPUR (Aug 21): 1Malaysia Development Bhd (1MDB) is confident of signing a definitive agreement with the potential buyer of its electricity-generation assets by the fourth quarter of this year.

In a statement today, state-owned 1MDB said it expected to complete the deal, soon after relevant conditions had been fulfilled, following signing of the agreement. 1MDB's power assets are parked under wholly-owned subsidiary, Edra Global Energy Bhd.

"1MDB has since shortlisted a select group of potential parties, comprising both local and international strategic investors, to progress their detailed due diligence inquiries into Edra, which houses our power assets. The due diligence exercise will entail, among others, discussions with management, access to data room and site visits, designed to facilitate the potential investors’ review of Edra.

"1MDB is confident that a definitive agreement with the chosen party can be entered into by Q4 2015, with completion to take place soon after relevant conditions precedent are fulfilled. As previously highlighted, the Board of Directors of 1MDB will be guided by, among other things, value maximisation to 1MDB’s shareholders, deal certainty, and terms that are fair and reasonable," 1MDB said.

It was reported that state-controlled utility Tenaga Nasional Bhd and YTL Power International Bhd were vying for 1MDB's power assets.

Last month (July), Tenaga announced it had submitted an indicative non-binding proposal to acquire the power assets from Edra.

Tenaga said it planned to acquire five domestic and eight international power assets from Edra.

It was also reported that several foreign parties from the Middle East and China, were also keen on 1MDB's power assets. Reuters reported the interested parties included Middle Eastern power firm ACWA Power; and Qatar Investment Authority.