KUALA LUMPUR (May 16): Tenaga Nasional Bhd will consider buying a stake in 1Malaysia Development Bhd's (1MDB) unit Edra Global Energy Bhd if the opportunity arises, The Edge Malaysia business and investment weekly (Edge Weekly) reported in its latest May 18-24 issue.

Edge Weekly, quoted Tenaga (fundamental: 1.3; valuation: 1.8) chief executive officer Datuk Seri Azman Mohd as saying in a rare interview that the price for the Edra stake had to be fair to generate value for state-controlled utility Tenaga's shareholders. 1MDB is planning to list Edra on Bursa Malaysia.

"We (Tenaga) are a power company. We do power generation. If any opportunity comes along, we will consider. It is our core business. 

"But, of course, the question is, at what price? It must add value for the shareholders. As a listed company, we cannot do otherwise. It has to be a fair price. A good price even. In fact, we are in a position to get a very good price, you know?" Azman said.

He however said no one had "officially" appproached Tenaga on the possibility of Tenaga acquiring a stake in Edra.

Yesterday, Tenaga shares rose 16 sen or 1.2% to close at RM14.04 for a market capitalisation of
RM79.24 billion. 

The stock had gained 2% this year versus the FBM KLCI's 3% rise.

For a better understanding on Tenaga under Azman's stewardship, kindly pick up and read the latest issue of Edge Weekly.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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