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.

InterGen is a global power generation firm with 12 power plants representing a total generation capacity of 8,088 MW (6,254 net equity MW). InterGen's plants are located in the UK, the Netherlands, Mexico, the Philippines and Australia.

But very little is known about the financial health of the company since it does not put up financial reports on public domain.

Since the company arranges conference calls on its financial releases only for investors and analysts, the media has to rely on analysts reports on the company's existing and planned capacity, its revenues, profits and debt.

But according to some analysts, InterGen has a market value of around $3 billion and holds debt of around $4 billion, which is mainly to fund its global infrastructure projects.

On the basis of these analysts reports, then GMR's 50-per cent stake in InterGen would be valued a little under $1.5 billion.