GMR completes sale of its stake in Singapore project

Total sales proceeds amounted to Rs 2,605 cr, the company said

Bangalore-based infrastructure major GMR group on Monday announced successful completion of the sale of its 70% interest in GMR Energy (Singapore) Pte Ltd  to FPM Power Holdings Limited (FPM Power).

The transaction was concluded on March 28, upon receipt of all necessary approvals, and realization of the total sales proceeds amounting to Singapore Dollars (SGD) 594.6 million (Rs 2,605 crore), the company stated in a press release.

According to the company, the divestment of this stake results in a profit of SGD 314 million (Rs 1,376 crore) and releases capital amounting to SGD 357 Mn (Rs 1564 crore).

FPM Power is a 60:40 joint venture established between First Pacific Company Limited and MERALCO Power Gen Corporation, a wholly-owned subsidiary of Manila Electric Company.

 
“ The receipt of the sales proceeds before the year end is significant and a testimony to the Group’s Strategy for making profitable deals, by adopting the Asset Light Asset Right approach. The deal has been concluded in a record time of 4 weeks, since its announcement. It is also heartening to note the Group’s ability to attract investors and churn capital for the benefit of all its stake holders ”  GMR Group chairman, GM Rao, said.