Huaneng buys power generation assets from Indian GMR
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China's top power generation company China Huaneng Group will spend US$1.232 billion buying 50 percent stakes of U.S.-based power generation firm InterGen N.V. from Indian infrastructure developer GMR Group.
GMR said the purchase of assets will help China Huaneng tap power generating assets in the UK, the Netherlands, Mexico, the Philippines and Australia with overall gross operational capacity of 8,148 MW.
GMR said the transaction requires customary regulatory approvals from above-mentioned countries as well as China and is expected to wind up the deal in the first half of 2011.
G. M. Rao, chairman of GMR Group, said the decision to divest shares in InterGen falls in line with company strategy to focus on Indian market and GMR Group could hence deploy more capital and management resources on domestic investments.
Rao said: "InterGen has emerged as a more efficient and strong power producer and we believe that China Huaneng will be an ideal partner in the next phase of InterGen's growth."
GMR Group purchased 50 percent stakes of InterGen in October 2008 at the price of 1.135 billion U.S. dollars.
Headquartered in Bangalore, GMR Group deals with airports, energy, highways and urban infrastructure businesses and has 14 power projects operational or under construction.
InterGen has 12 power plants scattered in several countries and Ontario Teachers' Pension Plan holds the other 50 percent of InterGen shares.
