1Malaysia Development Bhd (1MDB), a state-owned company, announced that it would pay an estimated US$380 million for the acquisition of a local coal power plant. This would be the third utility deal that the strategic development company entered into. The transaction would be subjected to approval from customary financing and the proper authorities.

"The acquisition is supported by Jimah's strong cash flows backed by a 25-year power purchase agreement expiring in 2033," stated 1MDB on Friday. Jimah Energy Ventures, a coal-fired power plant composed of two 700 MW units, was sold for RM1.2 billion for a 75% stake in the firm.

Jimah was majorly owned by the royal family Negri Sembilan, with 80% stake in the company, while Tenaga Nasional Bhd held the remaining 20% stake. Tenaga Nasional Bhd was the largest power utility of the country.

Last year, 1MDB acquired power assets Ananda Krishnan, the second richest man in Malaysia, and a RM10 billion deal for Gentin Bhd, a gaming-to-plantations group.