Date:27/09/11,
M&A,
Cross Border Deal, Announced,
GMR Infrastructure agreed to sell a 30% stake in GMR Energy (Singapore), or GMRE, to Petronas International Corp, an arm of Malaysian state-run oil firm Petronas, subject to approval of lenders.
GMRE is developing an 800-Mw combined cycle gas turbine power plant on Jurong Island, Singapore. Fuelled by re-gassified liquefied natural gas, the plant is scheduled for commercial operations in 2013.
However, GMR Supply Singapore, an arm of GMRE, would continue to hold the electricity retail licence in Singapore,
May 2009,
GMR had acquires 100% stake in this project for $10 million from US based Intergen. The project cost is around INR 4500 crore (about INR 5 crore per Mw).
The fuel supply has been tied up for 16 years. While GMR declined to comment on the financial terms of the deal, senior officials at the City-based infrastructure developer said the stake was sells at a 30% premium on the par value.
“We had got Island Power Project at a very competitive price and Singapore is a good market. There is no road map to further reduce our stake in this project as of now,” a senior GMR official said.
G M Rao, group chairman of GMR Group, said: “This relationship between GMR and Petronas opens up powerful synergy going forward for both groups. It is symbolic of true South-South cooperation and its immense potential in the energy market in the region.”
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