The Hindu Business Line : Lanco Infra, Jindal Steel buy Globeleq interest in Sasan

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Hyderabad, Feb. 13 Prince Stone Investments Ltd, the Mauritius-based holding company of Lanco Infratech Ltd (LITL), and Jindal Steel & Power Ltd (JSPL) together have acquired 100 per cent of the equity holding of Globeleq Ltd in Globeleq Singapore.

Globeleq Singapore and Lanco Infratech consortium were chosen successful bidders of the Sasan domestic coal-based ultra mega power project by the Power Finance Corporation in December 2006.

With this, the uncertainty about who would develop the ultra project has been resolved and as it transpires, Lanco and JSPL, which bid as different groups would effectively partner now to implement the project.

The Chief Financial Officer of Lanco Infratech, Mr J. Suresh Kumar, told Business Line that while Prince Stone Investments would acquire 60 per cent, the rest would be held by JSPL.

Since Globeleq Singapore held 70 per cent stake in Sasan and with JSPL acquiring 40 per cent stake, Jindal Steel would now hold about 28 per cent of total equity in the project.

The 4,000-MW project is being implemented with domestic coal and the Lanco Globeleq consortium had quoted Rs 1.19 paise per unit.

Mr Suresh Kumar said that the board of Globeleq Singapore Pte Ltd had unconditionally accepted the letter of intent at its board meeting held on February 12 in Singapore.

Significantly, these changes were necessitated as Globeleq globally decided to exit power projects.

Consequent to these developments, Globeleq Singapore retains its interest in the Sasan project under the new ownership structure.

Going forward, the company will execute the project with financial and technical support from Jindal Steel, Lanco Infratech and its affiliates, he said.

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