Private equity firms in fray for acquiring stake in Lanco Infratech's power bizz

26 Mar 2012 Evaluate

Private equity firms 3i, Blackstone and Carlyle have shown interest in buying a stake in the holding company that would be shaped up by combining all of Lanco Infratech's power assets. The holding company could be valued as much as $2 billion and investors could buy stakes worth up to $500 million.

Debt laden Lanco Infra, in order to raise money for a power plant, is planning the restructuring. Poor capital market sentiment, coupled with problems in the power sector affected plans for an IPO forcing it to consider a sale to investors instead.

Further, some of the international utilities such as E.ON, GDF Suez S.A. and AES Corp. have also evinced interest in the business. Lanco operates power plants with total capacity of 4,410 megawatt and plans to develop another 7,103 megawatt of capacity.

Lanco Infratech is one of the India’s top business conglomerates and among the fastest growing. The company has subsidiaries and divisions across a synergistic span of verticals. These include EPC, construction, power, infrastructure and property development.

Peers
Company Name CMP
Larsen & Toubro 2085.45
Rail Vikas Nigam 71.40
KEC International 418.95
NCC 79.80
Ircon International 62.05
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