Lanco, Jindal Steel buy Globeleq Singapore

Lanco Infrastructure and Jindal Steel & Power (JSPL) have acquired Globeleq Singapore to take the onus of implementing the Rs 16,000 crore ultra mega power project in Sasan.

Lanco and JSPL have purchased 60 per cent and 40 per cent shareholding, respectively, in the Singapore-based subsidiary of the investment arm of

DFID, a development agency of the British government.

J Suresh Kumar, CFO, Lanco Infrastructure, said the consideration for the acquisition was nominal.

"The project has a licence to generate power. The transfer of shares will take place for a nominal value. The new owners will now have the responsibility to chip in funds to implement the project," he added.

"While Lanco is capable of developing the project on its own, it has roped in Jindal Steel to address the concerns of the government over the successful completion of the project in the light of Globeleq's exit from the consortium," Kumar explained.

Less than two months ago, the Lanco-Globeleq consortium emerged as the winning bidder of the Sasan project. Lanco had 30 per cent stake, while Globeleq had 70 per cent stake in the consortium.

With the acquisition of Globeleq's stake, Lanco will have 72 per cent interest, direct and indirect, over the Sasan project while JSPL will have 28 per cent stake. JSPL reserves the right to scale up its holding to 49 per cent in the project in five years.

The shareholders will chip in Rs 3,200 crore as equity contribution towards the project while the remaining Rs 16,000 crore will be generated through debts Lanco may look at other assets of Globeleq which are put on the block.