China Huaneng Group close to buying GMR’s stake in InterGen for $1.4-bn

State-owned China Huaneng Group, the country's largest power producer, is close to buying GMR Infrastructure's stake in US-based power generator InterGen NV for about $1.4 billion.

Beijing-based Huaneng has become the sole bidder for GMR Infrastructure's 50 per cent stake in InterGen after Tata Power Co, India's largest private power producer dropped out of the race on differences on valuation of the power company.

Last month, Ratan Tata, the chairman of Tata Power had told shareholders at the company's 91st annual general meeting in Mumbai that the company is in talks to acquire GMR Infrastructure's stake in InterGen NV with a view to scaling up its global presence. (See: Tata Power to buy stake in UK's InterGen from GMR Infra)

According to various media reports, Huaneng is likely to pay around $1.4 billion to gain access to InterGen NV's 12 power plants located in the UK, Netherlands, Mexico, Australia and the Philippines as well for some non-operating assets.

The last major and only overseas acquisition done by Huaneng was in 2008, when it acquired Singapore's Tuas Power Ltd for $3.1 billion.

Bangalore-based GMR Infrastructure had acquired a 50-per cent stake in InterGen N V in 2008 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)