GMR Infrastructure may divest some of its stake in its Singapore power arm, which is building an 800 mw plant, and is talking to potential investors. A company official said they are considering a dilution but declined to comment on further details.
Earlier this month, group chairman GM Rao told shareholders at the company?s annual general meeting that the company was in talks with some investors. ?Some of the big companies are talking to us to invest some share with a premium,? he had said, adding that the company would decide in a few weeks. However, it is not clear as to how much of its stake the company would dilute.
GMR had acquired 100% ownership of Island Power in 2009 from InterGen, a global power generation company in which it had bought 50% stake in 2008.
The company had divested its stake in InterGen to the China Huaneng Group for $1.23 billion in March.
In July, GMR Energy (Singapore) achieved financial closure for the 800 mw natural gas fired plant Island Power. The package included a term loan of S$ 670 million and $270 million credit and working capital facility with a tenure of 17 years.
Construction of the plant began last month and GMR expects to start commercial operations in 2013. The plant, whose development cost is over S$ 1 billion, is GMR?s first independent power project outside India. GMR Infrastructure operates three power plants with a total generation capacity of 808.