Infrastructure developer GMR Wednesday announced it has acquired a 50 percent stake in Dutch power utility InterGen NV for $1.1 billion.
Describing it as "the most competitive acquisition", GMR said it will pay $360,000 per megawatt to buy eight plants operated by InterGen located in five countries.
In a regulatory statement, the company said InterGen's total generating capacity is 12,766 megawatt in the UK, the Netherlands, Mexico, Australia, and the Philippines.
"The transaction is subject to regulatory approvals in each country where InterGen has operations and is expected to close in the third quarter of 2008,” it said in the statement.
GMR bought the stake from AIG Highstar Capital, a fund owned by American International Group Inc. The remaining 50 percent share of InterGen will be held by the Ontario Teachers Pension Plan.
“The acquisition of a 50 percent in InterGen is an integral part of our global strategy to be the world's leading energy and infrastructure company,” GMR group chairman GM Rao said.
“This acquisition will provide us a platform to expand in InterGen's existing geographies and new geographies of strategic importance to both GMR and Teachers,” he added.