GMR close to selling InterGen stake to China Huaneng for about $1.5 bn
Tata Power considered a serious contender has withdrawn from the race for GMR's stake in InterGen, two people familiar with the development said.
MUMBAI: GMR Infrastructure is likely to sell it's 50% stake in InterGen to China Huaneng for close to $1.5 bn, three independent sources with direct knowledge confirmed to ET Now. The deal is expected to be closed by the calendar year sources said. Presently, China Huaneng is conducting due diligence on the company.
Tata Power considered a serious contender has withdrawn from the race for GMR's stake in InterGen, two people familiar with the development said on condition of anonymity. It is learnt that Tata Power has withdrawn from the bidding process due to differences in valuation expectations between the two sides.
Tata Power is also believed to have been interested in acquiring a controlling stake in the company which is a 50:50 JV between GMR and Canadian pension fund Ontario Teachers Pension Plan. Tata Group Chairman Ratan Tata had confirmed at the 91st AGM of the company held on 8th September this year that Tata Power was evaluating various acquisition opportunities overseas including InterGen.
This acquisition will help China Huaneng expand it's global operations. China Huaneng, state owned power generating enterprise, had acquired Tuas Power of Singapore for $3.1 bn in 2008. With InterGen stake buy, China Heuneng will control part of 12 power plants of InterGen operating in the UK, Netherlands, Australia, Mixico and Philippines.
In an e-mail response, GMR spokesperson said, "Some unsolicited bids were received which are going through the processes. This apart any talk of a suitor/s is entirely speculative at this stage."
Tata Power declined to comment on the development. Several calls made to spokesperson of China Huaneng, Wang Hongmei, were not answered.
Tata Power considered a serious contender has withdrawn from the race for GMR's stake in InterGen, two people familiar with the development said on condition of anonymity. It is learnt that Tata Power has withdrawn from the bidding process due to differences in valuation expectations between the two sides.
Tata Power is also believed to have been interested in acquiring a controlling stake in the company which is a 50:50 JV between GMR and Canadian pension fund Ontario Teachers Pension Plan. Tata Group Chairman Ratan Tata had confirmed at the 91st AGM of the company held on 8th September this year that Tata Power was evaluating various acquisition opportunities overseas including InterGen.
This acquisition will help China Huaneng expand it's global operations. China Huaneng, state owned power generating enterprise, had acquired Tuas Power of Singapore for $3.1 bn in 2008. With InterGen stake buy, China Heuneng will control part of 12 power plants of InterGen operating in the UK, Netherlands, Australia, Mixico and Philippines.
In an e-mail response, GMR spokesperson said, "Some unsolicited bids were received which are going through the processes. This apart any talk of a suitor/s is entirely speculative at this stage."
Tata Power declined to comment on the development. Several calls made to spokesperson of China Huaneng, Wang Hongmei, were not answered.
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