GMR completes divestment in InterGen NV

BANGALORE: Bangalore-based infra company, GMR Infrastructure, has completed the divestment of 50% stake in global power generation company InterGen to China Huaneng Group (CHG), the company said. In 2010, the infrastructure company had announced an agreement to divest its shareholding interest in InterGen NV to CHG, the largest power generation company in China, for a consideration of $1.23 billion. The deal was first reported in ET in November last year.

InterGen is a global power generation company with power plants located in the UK, the Netherlands, Mexico, the Philippines and Australia with a total gross operational capacity of 8,146 MW.

GMR had acquired 50% stake in InterGen NV in October 2008 for an equity value of $1.13 billion. The group chairman GM Rao had attributed the decision to divest the stake in InterGen to the group's strategy to focus more on Indian market where it was already the market leader.

"The overseas company holding Intergen shares was having a debt of $1 billion as on November and the sale would release $225 million equity that could be utilized for ongoing projects of the Group," the company said.

Bank of America Merrill Lynch and White & Case LLP acted as financial advisor and legal counsel respectively for GMR.