GMR picks up 50% in Netherlands co for $1.1 bn | business | Hindustan Times
Today in New Delhi, India
Jan 23, 2017-Monday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

GMR picks up 50% in Netherlands co for $1.1 bn

business Updated: Jun 25, 2008 21:20 IST
HT Correspondent
HT Correspondent
Hindustan Times
Highlight Story

Infrastructure company GMR group has acquired a 50 per cent stake in the Netherlands-based power producer InterGen NV for $1.1 billion. The all-cash deal is the biggest acquisition by any Indian infrastructure company. GMR said it has tied up with several banks to finance the deal, but gave no details.

GMR acquired the stake from AIG Highstar Capital, a US based fund. Ontario Teachers Pension Plan (OTPP) is the other shareholder of Intergen owns 50 per cent stake in the company, a GMR statement said.

InterGen owns 12 operating power plants, including one in its home country, with capacity totaling 8,258 MW. It is in the process of adding 4,822 MW in new capacities. The company has operations in five countries with total proportional turnover of around $ 1.65 billion for the year ended December 2007.

It is the most competitive acquisition at $360,000 per MW, which is half the current cost of similar facility.

Under the deal, GMR will appoint five of the 10 directors on board of InterGen. Its current CEO, Neil Smith, is an independent professional and is not a member of the board, a spokesperson for GMR said, adding that a decision on restructuring the management of the acquired company has yet to be made.

“This acquisition will provide us a platform to expand in InterGen’s existing geographies and new geographies of strategic importance to both GMR and OTPP,” G M Rao, chairman of GMR Group, said in a statement. “Our core experience in the ‘energy business life cycle’, covers identifying opportunities, developing assets in greenfield areas, strong project management skills, financial structuring and efficient operations.”

InterGen's Smith described the deal as "a positive step in strengthening our position as a leading owner, operator and developer of global power projects.”