Mumbai: GMR Infrastructure Ltd has bought 50% stake in Netherlands-based power generation company InterGen N.V. for $1.1 billion.
“GMR signed the share purchase agreement with AIG Highstar to acquire the stake in InterGen,” it said in a statement to the stock exchange. Ontario Teachers Pension Plan holds the other half of the power company, which operates in five countries.
“This acquisition will provide us a platform to expand in InterGen’s existing geographies and new geographies of strategic importance to both GMR and Teachers,” GM Rao, chairman of the GMR Group said.
The group has interests in energy, airports, highways and urban infrastructure.
InterGen has ownership interest in 12 operating power plants, including one under construction, with a gross capacity of 8,258 megawatts and 4,822 megawatts of assets under development. The average age of its operating plants is 5.5 years.
NM Rothschild and Sons was the sole financial advisor while White and Case LLP worked as legal advisors to the GMR group on the transaction which is expected to be closed in calendar year 2008.
Shares in GMR were trading up 4.11% at Rs100.10 in a weak Mumbai market.