GMR Infrastructure acquires 50-per cent stake in InterGen N V for $1 billion

25 June 2008

Mumbai: Bangalore headquartered global infrastructure company GMR is acquiring a 50-per cent stake in global power generation company InterGen NV, from AIG Highstar Capital II, L.P. and affiliates.

GMR Infrastructure Limited will jointly own InterGen with the Ontario Teachers' Pension Plan, which has been a 50 per cent owner of InterGen since 2005. Teachers is the largest single-profession pension plan in Canada with $107 billion in investments.

InterGen was formed in 1995 as a JV between Bechtel and PG&E Corporation.  In 1997, Bechtel purchased all of PG&E's interest in InterGen and later that year sold a 50 per cennt interest to Shell Generating Limited.  In 2005, Shell and Bechtel sold all of their combined interests in the company to Highstar and Teachers'.

InterGen is the second international transaction for GMR after Istanbul's Sabiha Gocken International Airport operations was taken over on 1 May  and financial closure achieved in June 2008.

This transaction, GMR Infrastructure (Malta) Limited, is valued at $1.1 billion, and is said to be the largest ever acquisition of an energy utility company by an Indian company.  The transaction, subject to customary agreements and regulatory approvals, is expected to close in the third quarter of 2008.

GMR says InterGen is the most competitive acquisition at $360,000 per MW which is half the current cost of similar facility.