GMR Infrastructure mulls selling stake in InterGen NV: report
24 Jul 2010
Bangalore-based GMR Infrastructure is planning to sell its stake in the US-based global power generation company InterGen N V and is seeking buyers who are willing to pay around $1 billion.
The Wall Street Journal today reported citing people familiar with the matter that the process is in its early stages and GMR may not sell its stake if buyers could not meet its price expectations.
The company had said in December that it planned to raise Rs20 billion by March 2011 for setting up power plants. It currently has two projects under construction in Hyderabad and Chennai and said it would invest $400 million over the next four years on the Male International Airport expansion and management. (See: GMR to invest $400 million on Male airport modernisation)
GMR Infrastructure is the flagship of the GMR Group that focuses on development of airports, power generation, highways and urban infrastructure and has operations in Europe, Mexico, Istanbul, Male and Australia.
In 2008, GMR Infrastructure acquired a 50-per cent stake in InterGen N V for $954 million from AIG Highstar Capital II, L P, a private equity fund sponsored by AIG Global Investment Group, an indirect subsidiary of the stricken American International Group, Inc. (See: GMR acquires 50-per cent stake in InterGen for $954 million)
The remaining 50-per cent is held by Ontario Teachers' Pension Plan, one of Canada's largest financial institutions with net assets of $85 billion, which had acquired the stake in 2005.