Tata Power in talks for acquiring GMR’s stake in InterGen for $1.2 billion

Tata Power, India's largest private sector power utility is reportedly in talks to buy GMR Infrastructure's 50-per cent stake in the US-based global power generation company InterGen N V for $1.2 billion.

Cciting a source with direct knowledge of the situation, Reuters today reported that Tata Power is in talks to buy GMR's 50-per cent stake InterGen NV for $1 billion to $1.2 billion.

Late last month, Bangalore-based GMR Infrastructure was reported to be planning to sell its stake InterGen N V and was seeking buyers who are willing to pay around $1 billion. (See: GMR Infrastructure mulls selling stake in InterGen NV: report) 

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.

Bangalore-based infrastructure firm GMR Infra had early this month re-financed its bridge loan of $737 million, which it had raised to acquire a stake in InterGen and was due for repayment in October this year. (See: GMR Infra refinances $737 million bridge loan ahead of sale of InterGen)