Power Foothold

May 28, 2007 (LBO) – The Malaysian firm Tanjong, controlled by billionaire Ananda Krishnan, has taken a foothold in Sri Lanka's power sector by acquiring an international energy firm with investments in the country, the company said Monday. In a filing at the Kuala Lampur stock exchange Tanjong said it had taken over Globeleq, a unit of the UK-based emerging market investor group CDC.

CDC is the now 'privatized' former Commonwealth Development Corporation. Its power sector assets are held through Globeleq.

Tanjong said Globeleq has a 29 percent stake each in ACE Power Matara and ACE Power Horana, as well as natural gas power stations in Egypt, Pakistan and Bangladesh.

The power firms had a total of 1810 MegaWatts of capacity though the Sri Lanka units were the smallest with 25 MW each.

The ACE Power firms are part of the Colombo listed Aiken Spence and Company.

Tanjong which has a dual listing in London also holds the lucrative gaming divisions of the Ananda Krishnan empire.

"Sri Lanka's unreliable power sector is one of the weakest links in the country's infrastructure," Tanjong told shareholders.

"Problems in the sector have resulted in 75 percent of all urban enterprises owning generators, even thoug