GMR Infra picks up 50% stake in Dutch power firm

The company will pay $360,000 per megawatt which is half the current cost of similar facility, GMR said in a statement to the Bombay Stock Exchange today.  InterGen NV currently has operations in 5 countries--UK, Mexico, Philippines, Australia and Netherlands with total net capacity of 12,766 Megawatts (8086 MW of operational capacity and 4680 MW of asset under development).

"The acquisition of a 50 per cent stake in InterGen NV is an integral part of our global strategy to be world's leading energy and infrastructure company. This acquisition will provide us a platform to expand in InterGen's existing geographies and new geographies of strategic importance to GMR and Teachers. Our core experience in the energy business life cycle covers identifying opportunities, developing assets in greenfield areas, strong project management skills, financial re-structuring and efficient operations," said GM Rao, Group Chairman of GMR Group.

InterGen NV's  total proportional turnover is approximately $ 1.65 billion and total proportional earnings before interest, tax, depreciation and amortisation (EBITDA) is $ 613 million for the year ending December 2007. The transaction is subject to regulatory approvals in each country where InterGen has operations and is expected to close in the third quarter of 2008.  NM Rothschild & Sons worked as financial advisor while White &Case LLP worked as legal advisor to GMR Group on this transaction.