GMR Infra Bought 50% stake of InterGen NV

By Bharat Ratna

• GMR Infrastructure Ltd. acquired 50 percent of InterGen NV for $1.1 billion, the biggest overseas energy acquisition by an Indian company.

• InterGen, Dutch Power Company, has a total gross capacity of 12,766 megawatts, including 4,680 megawatts of projects under development

• After this stake, GMR can access InterGen's 12 operating power plants in the U.K., the Netherlands, Mexico, Australia and the Philippines

• Mr G.M. Rao, chairman of the GMR Group said that this acquisition will provide a platform to expand in InterGen's existing geographies and new geographies.

GMR Infrastructure bought the 50 percent stake of InterGen NV, from AIG Highstar Capital, a fund owned by American International Group Inc. The remaining 50 percent share of InterGen will be held by the Canada based Ontario Teachers Pension Plan.

InterGen has 12 power plants representing a total net capacity of 12,766 megawatts. For the year to December 2007, it reported a turnover of about $1.65 billion and EDITDA of $613 million. These facilities include 5,280 net equity MW in operation, 428 MW under construction, 523 MW under agreement.

Mr. G M Rao, Group Chairman, GMR Group said that the acquisition of a 50% equity stake in InterGen N V is an integral part of our global strategy to be the world's leading energy and infrastructure company. 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'. Such growth will be supported by the strong management, high quality assets and a partner like Teachers', which is also a leading global infrastructure investor."

GMR is an infrastructure company engaged in the business of energy, airports, highways and urban infrastructure. With the help of this strategy, the GMR group, through InterGen, gets a global outlook for growth and development with high quality & operation management and strong expertise.

Mr Madhu Terdal, Executive Vice President of GMR group, said "This is the largest-ever acquisition of a global energy utility by an Indian company. After this acquisition, we are the largest power sector player in the country,"

The company has raised USD 1.1 billion through a bridge loan from a consortium of Indian banks. The bridge loan would have a maturity of two years after which it would be converted into a long-term loan

Mr. Neil Smith, CEO of InterGen NV told that We are very pleased that GMR, with its significant power and infrastructure development experience, has made this strategic investment in InterGen. Further he said that this is a positive step in strengthening our position as a leading owner, operator and developer of global power projects.