Tanjong Plc, a Malaysian power supplier controlled by billionaire T. Ananda Krishnan, agreed to buy Globeleq Ltd. for $493 million, gaining electricity plants in Egypt, Bangladesh, Pakistan and Sri Lanka.

Tanjong's 55 percent-owned unit, Pendekar Energy Ltd., will buy Globeleq from CDC Globeleq Holdings Ltd. in cash, the company said in a statement in Kuala Lumpur today.

Excess power capacity in Malaysia is limiting earnings growth for electricity generators in the Southeast Asian country including Tanjong, Malakoff Bhd. and state-controlled Tenaga Nasional Bhd. Electricity demand has failed to keep up with supply increases, leading to an excess capacity of 40 percent, according to Tenaga.

``It's only natural for them to venture overseas to growth markets to gain a foothold there as opportunities at home are limited,'' said Pankaj Kumar, who manages about $430 million as chief investment officer at Kurnia Insurans Bhd. in Kuala Lumpur, including Tanjong shares . It's ``too early'' to say if Tanjong plans to list its overseas power assets.

The Malaysian company's bid follows investments from Telekom Malaysia Bhd. and Malaysian electricity generator MMC Corp. in South Asia and the Middle East as economic growth fuels demand for power. Tanjong said Globeleq's seven plants will increase its total capacity by 25 percent.

Globeleq's power plants have an installed capacity of 1,810 megawatts, according to the company.

``They have been scouting around for overseas projects for the past two to three years,'' said James Ratnam, an analyst at TA Securities Bhd. in Kuala Lumpur, who recommends investors buy Tenaga shares. ``There are a lot of investments coming up in the Middle East power sector. With a stronghold in one country, it's easier to expand in the region.''

Share Halt

Tanjong shares were halted for the announcement, and last traded at 18.20 ringgit on May 25, valuing the company at 7.34 billion ringgit ($2.2 billion). The stock will resume trading tomorrow.

The stock, which also has interests in gaming and property investment, has climbed 26 percent this year, more than the 22 percent gain by the benchmark Kuala Lumpur Stock Exchange Composite Index.

Tanjong already has two operational power plants in Egypt.

``The proposed acquisition will allow the Tanjong Group to invest in a stable, cashflow-generating business with an immediate income stream,'' Tanjong said in its statement.

Tanjong will pay its share of the purchase price, $271.2 million, using internal funds and bank loans, the company said. Aljomaih Automotive Co., a Saudi Arabian company that sells cars, trucks and buses, owns the rest of Pendekar.

Krishnan also controls the country's pay-television operator, Astro All Asia Networks Plc, and the biggest mobile phone operator in Malaysia, Maxis Communications Bhd. His assets are worth $7.4 billion, making him Malaysia's richest man after Robert Kuok, according to Forbes Inc.

Israel Corp., a holding company, said yesterday it will buy power stations in Latin America and the Caribbean with India's DS Constructions Ltd. from Globeleq for about $568 million. The power plants have a combined output of 2,000 megawatts.