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GMR offloads 50% stake in InterGen to China co; eyes $150 mn private equity cash

13 Apr 2011 Evaluate

GMR Infrastructure Ltd has completed divestment of 50 per cent stake in global power generation company InterGen to China Huaneng Group (CHG). The infrastructure corporate had in November last year announced an agreement to divest its 50 per cent shareholding interest in InterGen NV to CHG, the largest power generation company in China, for an equity value of USD 1.23 billion. 

GMR had acquired 50 per cent stake in InterGen NV in October 2008 for an equity value of USD 1.13 billion. The overseas company holding Intergen shares was having a debt of USD 1 billion as on November and the sale would release USD 225 million equity that could be utilized for ongoing projects of the Group.

Meanwhile, the company is looking to raise $150 million through private equity for its airport arm. The company was in the process of securing final government approvals for the deal, which had already won clearance from the Foreign Investment Promotion Board. There would be no immediate equity dilution due to the investment as it would be in the form of compulsorily convertible structured product that will be convertible when the unit goes public. With these private equity investments, Bangalore-based GMR's cash position is likely to touch $1 billion. 

Last year, the company raised $300 million through a private equity sale in GMR Energy. Earlier on Tuesday, GMR said it had completed the sale of its 50-percent stake in US-based utility InterGen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt. The company bought the stake for $1.1 billion in 2008.crackcrack

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