GMR Completes Divestment Of Its 50% Shareholding In InterGen N.V.
Strategic Transaction with China Huaneng Group enables GMR to primarily focus infrastructure in its core markets.
Bangalore, April 12, 2011: GMR Group (“GMR”) announced today that it has completed its previously announced sale of a 50% interest in InterGen NV (InterGen) to a consortium led by China Huaneng Group (Huaneng) for total consideration of $1,232 million. The transaction is completed after obtaining various regulatory approvals in each of the jurisdictions where InterGen has operations as well as approval of the Government of the People’s Republic of China. Completion of this transaction reduces GMR Group’s debt liability to the tune of USD 1 Billion and would release USD 225 Million as equity that can be utilized for future investments by the Group.
Commenting on completion of the transaction, Group Chairman, GMR Group Mr. G.M. Rao stated, "The completion of the sale of our interests in InterGen increases our capacity to focus on developing infrastructure projects in our core markets, where we have an exceptional track record of value creation." Mr. Rao added, "We are confident Huaneng will be a strong shareholder for InterGen as it continues the next phase of its growth plan."
The Global Energy and Power Teams of BofA Merrill Lynch and White & Case LLP acted as Financial Adviser and Legal Counsel respectively to GMR.
About GMR Group
GMR Group is a Bangalore headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure. The Company has successfully employed the public-private partnership model to build a portfolio of high quality assets. The Company has 14 power projects of which 3 are operational (808 MW) and 11 projects (8448 MW) are under various stages of implementation. It has 9 road projects, of which 6 are operational (421 km) and 3 are under construction (309 km). In the Airports sector, the group operates 4 airports located at Delhi and Hyderabad in India, Istanbul in Turkey and Malé in the Maldives. Additionally, the Group is committed to social development initiatives and executes these through its Corporate Social Responsibility arm, the GMR Varalakshmi Foundation (GMRVF).
For further information about GMR Group, visit www.gmrgroup.in