Herbert Smith Freehills advises CGN on completion of US$2.3 billion acquisition of energy assets in five countries

Herbert Smith Freehills has advised CGN of China on the completion of its US$2.3 billion acquisition of the energy assets of Edra Global Energy Berhad.

The assets include interests in 13 power plants in Malaysia, Bangladesh, Egypt, Pakistan and the United Arab Emirates, representing a total generating capacity of over 6,620MW.

The transaction closed on 23 March, only four months after the announcement of the deal. 

The completion of this US$2.3 billion transaction represents: 

• by value, the largest cross-border energy-related deal to complete in Asia so far this year
• one of the largest investments by a foreign power company in Malaysia
• the largest ever investment by a Chinese state owned power company in Southeast Asia 
• one of the largest recent power sector transactions worldwide.

Singapore-based energy partner David Clinch led a multi-jurisdictional, cross-practice team of more than 35 lawyers from Herbert Smith Freehills to advise CGN, working with colleagues in Southeast Asia, Australia, China and the UK to complete the deal.

"We are very proud to have completed this ground-breaking transaction for major client CGN," said David. "Our team and the client worked together closely to sign the original deal in a very short timeframe, and now we have completed it successfully in just four months." 

"Our power sector business in Southeast Asia is very strong, with a number of new transactions and projects already underway this year.  Clients recognise that we offer top-quality regulatory, transactional and financing advice combined with deep sector knowledge," said David. 

The transaction was recently named "Premium M&A Deal of the Year" at Asian Legal Business' Malaysian Law Awards on 7 April 2016.