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GMR Infra announces strategic investment of $300 million from Tenaga into GMR Energy

09 May 2016 Evaluate

GMR Infrastructure has approved the proposed primary capital investment by Tenaga Nasional Berhad (Tenaga) in GMR Energy (GEL). The investment represents 30% equity stake in a select portfolio of GEL assets on fully diluted basis, for cash consideration of $300 million.

Through this partnership, GMR Group is bringing a world class power developer and operator in Indian market. Tenaga’s experience would further facilitate GEL in improving the performance of its operational assets and develop it’s under development pipeline of hydro & renewable energy assets.

The synergies that would be created will lead to a long and strong partnership benefiting both GEL and the Indian Power sector. The funds invested would primarily be utilised for repayment of corporate debt. This would lead to a reduction in GIL consolidated corporate debt and will result in a stronger balance sheet.

GEL will manage a balanced portfolio of coal based, gas based and renewable (Hydro & Solar) power projects having a total capacity of 4,630 MW. This portfolio would have an operating capacity of 2,300 MW and pipeline capacity of 2,330 MW.

Tenaga is the largest power utility player in Malaysia with an integrated presence across the value chain of power generation, transmission & distribution. With a total installed capacity of 10,818 MW and 50% market share of the Malaysian grid’s generation capacity, it has strong pedigree and backing of the Malaysian government. Further, it has significant experience in managing and operating power assets with several thermal power plants, large hydro plants, power distribution business and supporting O&M of independent power producers (IPPs) all over Southeast Asia, South Asia and Turkey.

 

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