GMR sells its 50 per cent InterGen stake to China's Huaneng Group for $1.23 billion
12 Apr 2011
The Hyderabad-based GMR Group has divested its entire 50-per cent stake in global power utility InterGen NV to a consortium led by China Huaneng Group, in a deal valued at around $1.23 billion.
China Huaneng Group's acquisition of InterGen NV has received various regulatory approvals in each of the jurisdictions where InterGen has operations as also from the government of the People's Republic of China.
The divestment has helped the GMR Group reduce its debt liability by $1 billion while also releasing $225 million that can be utilised for future investments by the group.
The global energy and power teams of Bank of America Merrill Lynch and White & Case LLP acted as financial adviser and legal counsel, respectively, for GMR.
Separately, InterGen on Monday announced the completion of Huaneng Group's acquisition of the 50-per cent interest from GMR Infrastructure Limited.
China Huaneng Group now jointly owns InterGen with the Ontario Teachers' Pension Plan. Teachers' has been a 50-per cent owner of InterGen since 2005.