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| Edited By: KV Ramana |Source: DNA |Updated: Mar 17, 2018, 05:53 AM IST
Infrastructure major GMR is at an advanced stage of concluding the much-awaited stake sale in global power major InterGen.
GMR, which holds 50% equity in InterGen, will conclude the deal and sell off the stake by March 2011.
“We are engaged in due diligence process. There are several statutes and jurisdictions that cover the deal. It may take a while for us to go through them. But we will conclude the deal within this financial year,” A Subba Rao, GMR’s group chief financial officer, said.
In October 2008 GMR had bid for and acquired 50% stake in InterGen NV, one of the major independent power producers in the world, for $1.2 billion.
GMR has been evaluating several proposals from buyers for the InterGen stake though most of them are said to be unsolicited.
It has also been indicating that the stake sale would happen only if the buyers come up with a proposal to offer anything upwards of $1.5 billion.
InterGen is a global power generation company with 12 power plants representing a total generation capacity of 8,088 mw.
It is jointly owned by the Ontario Teachers’ Pension Plan and GMR Infrastructure. InterGen’s plants are located in the UK, the Netherlands, Mexico, the Philippines and Australia.
The company has beneficial interests in generation assets through a combination of combined cycle gas turbine (CCGT) and coal technologies.
Meanwhile, GMR is currently focusing on making every asset owned by it profitable. “Internally, we have decided to focus on the bottomline improvement plan. Our effort is to make each asset profitable,” Rao said.
According to him, many of the assets owned by the company are getting ready to become profitable.
“The Hyderabad airport will be in profit from the current quarter. Within two years of operations, either through higher user development fee or increasing traffic, the airport is getting into profit,” he said.
“The power assets make profit almost immediately after commissioning. The toll road projects, except Ambala-Chandigarh, will turn profitable shortly. Delhi airport will take some time since we are stabilising operations there currently,” he said.
