GMR sells stake in energy biz for Rs.2,905 cr
The remaining 30% stake in GMR Energy is held by Malaysia’s Petronas, which will continue to stay invested in the project.
“The sale translates into a enterprise value of S$1,612 million on project completion by end 2013,” the GMR Group said in a statement.
“The divestment of our stake results in a profit of Rs 1,356 crore (S$ 307 million) and releases capital amounting to Rs 1,616 crore (S$ 366 million).”
Macquarie Capital India and Standard Chartered Bank have jointly advised GMR on this transaction.
"The divestment is the offshoot of the group's well thought out strategy of an asset right-asset light and cash flow based model that the group has embarked in recent times,” GM Rao, group chairman, said in a statement. “This is the second such strategic move after last month's divestment of 74% in GMR Jadcheria road project at a premium. The cash flows will help GMR Energy to focus on our domestic energy business and accelerate ongoing projects totalling to 5,750 MW.”
Sources said that the infrastructure major got less than what it was expecting for its stake. “They were
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