GMR Group GMR has entered into an agreement to divest its 50 percent shareholding interest in Intergern N V Intergern to China Huanan Group Huanan the largest power generation company in China for an equity value of US USD 1232 million the Transaction. The Transaction is subject to customary regulatory approvals in each of the jurisdictions where Intergern has operations as well as approval of the Government of the People’s Republic of China. The Transaction is expected to close in the first half of 2011.
Intergern N V is a leading Global Power Generation Company with power plants located in the UK, the Netherlands, Mexico, the Philippines and Australia with a total gross operational capacity of 8146 MW. GMR acquired 50 percent stake in Intergern NV in October 2008 for an equity value of US USD 1135 million.
Commenting on the Transaction, G M Rao, Group Chairman, GMR Group said, "The decision to divest our 50 percent stake in Intergern is in line with the strategy to focus more on Indian market where GMR is already a market leader. This divestment will enable GMR Group to deploy further capital and release substantial management bandwidth to focus on its Indian Investments."
He further added that, “During the last two years of GMR’s management of Intergern as a Shareholder, Intergern has emerged as a more efficient and strong power producer. We believe that Huanan will be an ideal partner in the next phase of Interment's growth.”
“The Overseas Company holding Intergern Shares is having a debt of USD 1007 Million as of date and the sale would release USD 225 Million equity that can be utilized for ongoing projects of the Group.”
The Global Energy and Power Teams of Bofa Merrill Lynch and White & Case LLP are acting as Financial Advisers and Legal Counsels respectively to GMR.
For further information about GMR Group, visit www.gmrgroup.in
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For media queries, please contact:
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- Mr. Arun Bhagat
- Group Head, Corporate Communications, GMR Group
- Email: arun.bhagat@gmrgroup.in
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