GMR Energy allots 30% stake to Tenaga for $300 million
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Mumbai: GMR Energy Ltd (GEL) has completed the transaction of allotting 30% stake to Malaysia-based Tenaga Nasional Bhd (TNB) for cash consideration of $300 million.
“GMR Energy, a subsidiary of GMR Infrastructure Ltd, has alloted 30% stake to Tenaga Nasional Berhad, Malaysia for a cash consideration of $300 million, implying an equity value of $1 billion or around Rs6,665 crore,” the company said in a statement.
GEL and TNB had announced this strategic partnership in May 2016 and the allotment of shares marks the completion of this landmark transaction in the power sector, it said.
Through this investment, GMR continues to reduce its corporate debt on an ongoing basis, thus strengthening its balance sheet and attracting foreign capital, both equity and debt.
“This deal would provide a renewed impetus to our energy business and result in a stronger balance sheet enabling the company to capitalise on future growth opportunities. In the wake of government reforms, the investment from Tenaga Malaysia heralds the attractiveness of the Indian energy sector to the foreign investors,” GMR Energy chairman G.B.S.Raju said.
This foreign direct investment from TNB is the first of its kind in the Indian power sector and represents the underlying strengths of the industry in spite of the headwinds being faced over the last few years, Raju said. “The transaction is also expected to have a cascading effect on the Indian power sector and pave the way for more foreign investments,” he added.
GEL now has a diversified portfolio of coal based, gas based and renewable (hydro and solar) power assets having total capacity of 4,630MW. The portfolio comprises operating capacity of 2,300MW and pipeline capacity of 2,330MW.