Malaysia's Genting in talks to sell power assets

KUALA LUMPUR, May 28 (Reuters) - Malaysian gaming to power company Genting Bhd has held talks with different parties to sell its power generation business, but no decision has been made, the company said on Wednesday.

"Genting wishes to confirm that it has been approached by various parties for the potential purchase of its power assets," the company said in a statement, adding it had held discussions to explore opportunities, but give no further details.

Separately power distributor Tenaga Nasional Bhd said it would consider bidding for Genting's power generation business.

"It would be natural for TNB, as the vertically integrated utility in the Malaysia power sector, to look towards expanding its business," it said in a statement. "This too would be in line with TNB's 20-year strategic plan to become international player in the power business."

The Edge Financial Daily, quoting unnamed sources, had said on Wednesday that Tenaga had emerged as frontrunner to purchase Genting's energy assets.

It said the price for Genting's power assets, which include plants in Malaysia, China and India, had not been decided but could exceed 3 billion ringgit ($938 million).

Tenaga is among several local and foreign parties that have expressed interest in Genting's power plants, the paper said, along with Malakoff Bhd and Tanjong Bhd .

The paper added a private equity fund run by banking group Standard Chartered is also looking at putting together a team of investors to take a substantial stake in Genting's power division. But since Malaysian generation assets cannot be substantially owned by foreigners the local players are favoured to get the assets, the report said.

The Edge said Genting is exiting the power business to focus on its business in Singapore, where it is building a casino for up to S$6 billion ($4.4 billion), some S$800 million above its initial budget due to higher construction costs.

The jewel in Genting's power assets is the 720 megawatt Genting Sanyen Power Sdn Bhd, which has eight years of its concession to run. Its Chinese power plants have a total generating capacity of 1,671 MW. In India its assets have a generating capacity of 481 MW.

Genting shares, which ended 2.54 percent down at 5.75 ringgit on Wednesday, have fallen more than 27 percent this year.

(Reporting by Ramthan Hussain and Jalil Hamid; Editing by David Holmes) ((ramthan.hussain@reuterthomson.com; Reuters messaging: ramthan.hussain.reuters.com@reuters.net))