Companies

GMR offloads 50% stake in InterGen to Chinese co

PTI Hyderabad | Updated on April 12, 2011

Bangalore-based infra major GMR Infrastructure Ltd has completed divestment of 50 per cent stake in global power generation company InterGen to China Huaneng Group (CHG), said the company.

The infrastructure corporate had, in November last year, announced an agreement to divest its 50 per cent shareholding interest in InterGen NV to CHG, the largest power generation company in China, for an equity value of $1.23 billion.

InterGen is a global power generation company with power plants located in the UK, the Netherlands, Mexico, Philippines and Australia with a total gross operational capacity of 8,146 MW.

Mr A. Subba Rao, Chief Finance Officer GMR, when contacted, said they were yet to work out the net outcome of the transaction.

“We will have to consider issues such as consultant fee and taxes before coming to a final figure,” Mr Subba Rao told PTI.

GMR had acquired 50 per cent stake in InterGen NV in October 2008 for an equity value of $1.13 billion.

The Group Chairman, Mr G.M. Rao, had attributed the decision to divest the stake in InterGen to the group’s strategy to focus more on Indian market where it was already the market leader.

Further, he had said, the overseas company holding Intergen shares was having a debt of $1 billion as on November and the sale would release $225 million equity that could be utilised for ongoing projects of the group.

The Global Energy and Power Teams of BofA Merrill Lynch and White & Case LLP acted as Financial Advisers and Legal Counsels respectively to GMR.

Published on April 12, 2011

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