GMR Infrastructure is likely to sell its 50% stake in InterGen to China Huaneng for close to $1.5 billion. The deal is expected to be closed by the end of the calendar year. This will help Huaneng expand its global operations.
China Huaneng, a Chinese state-owned power generation enterprise, acquired Tuas Power of Singapore for $3.1 billion in 2008. The proposed transaction will give the company access to 12 power plants operating in the UK, the Netherlands, Australia, Mexico and the Philippines.
GMR paid $1.1 billion to buy 50% in Inter-Gen in 2008 and financed the entire deal through debt. GMR had intended to service the debt through dividends received from InterGen, but the company continued to underperform and hence, debt obligations were a constant strain on GMR's balance sheet. The interest on the InterGen loan is $60 million while dividend receipts are only $32.5 million, clearly a losing situation. crackcrack
| Company Name | CMP |
|---|---|
| Dreamfolks Services | 83.46 |
| GMR Airports | 98.70 |
| View more.. | |
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