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Tata Power in Talks to Buy Stake in Utility InterGen

27 Aug 2010 Evaluate

Tata Power Co., the generating unit of India’s biggest industrial group, is in talks to buy a 50 percent stake in power utility InterGen NV, according to sources. The company is negotiating to acquire the stake from GMR Infrastructure Ltd. At least four companies are competing for the stake with China Huaneng Group, the nation’s biggest electricity producer is in advanced talks to acquire the stake for about $1.2 billion. The sale may be announced in the next two months.

Tata Group Chairman Ratan Tata has made 66 acquisitions in two decades to build a group with sales of more than $70 billion. InterGen would add revenue from 12 power plants in the U.K., Netherlands, Mexico, Australia and the Philippines. GMR Infrastructure  bought 50 percent of InterGen in 2008 for $1.1 billion from a fund owned by American International Group Inc. The rest of InterGen is owned by Ontario Teachers’ Pension Plan.

Tata Power has 7.5 billion rupees ($160 million) of cash and 15.6 billion rupees in short term investments.

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Tata Power Share Price

436.00 -3.20 (-0.73%)
08-May-2026 16:59 View Price Chart
Peers
Company Name CMP
NTPC 402.20
Tata Power 436.00
Adani Power 225.15
Power Grid Corp 313.90
Torrent Power 1724.80
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