The GMR Group has entered into an agreement to divest its 50 per cent shareholding interest in InterGen NV to China Huaneng Group, China’s largest power generation company, for an equity value of $1.2 billion (Rs 5,500 crore).
The transaction is subject to regulatory approval in each of the jurisdictions where InterGen has operations, as well as that of the Chinese government. The transaction is expected to close in the first half of 2011, GMR said in a statement today.
InterGen is a global power generation company, with units in Britain, the Netherlands, Mexico, the Philippines and Australia, with a total gross operational capacity of 8,146 Mw. GMR acquired 50 per cent stake in October 2008, for an equity value of $1.1 billion.
G M Rao, group chairman, GMR said: “The decision to divest our 50 per cent stake in InterGen is in line with the strategy to focus more on the Indian market, where GMR is already a market leader. This divestment will enable the GMR Group to deploy further capital and release substantial management bandwidth to focus on its Indian investments.”
The global energy and power teams of BofA Merrill Lynch and White & Case LLP are acting as financial advisers and legal counsels, respectively, on the deal to GMR.
