Tenaga invests $300 mn in GMR Energy's assets portfolio

Malaysia's largest power utility player Tenaga Nasional (TNB) has picked up a 30 per cent stake in GMR Energy's select portfolio of assets for USD 300 million, GMR Infrastructure today said.
"The management committee of GMR Infrastructure (GIL) today approved the proposed primary capital investment by Tenaga Nasional Berhad (Tenaga) in GMR Energy (GEL). The investment represents 30 per cent equity stake in a select portfolio of GEL assets on a fully-diluted basis for cash consideration of USD 300 million," the company said in a statement.
The funds will help reduce GIL's consolidated corporate debt and result in a stronger balance sheet, it said.

GEL is expected to tap Tenaga's experience in improving performance of its operational assets and develop its under development pipeline of hydro and renewable energy assets.
Tenaga is the largest power utility player in Malaysia with integrated presence across the value chain of power generation, transmission and distribution.
With a total installed capacity of 10,818 MW and 50 per cent market share of the Malaysian grid's generation capacity, it has a strong pedigree and backing of the Malaysian government.

Furthermore, it has a rich experience in managing and operating power assets across South-East Asia, South Asia and Turkey.
GMR Group Chairman G M Rao said, "India's substantial and sustained economic growth will require collaboration from all stakeholders in the power sector. The Prime Minister has set a vision of 24x7 power for all by 2022... We believe our partnership with a major power sector player like Tenaga is one of the steps to implement the Prime Minister's vision.

GEL will manage a balanced portfolio of coal-based, gas-based and renewable (hydro and solar) power projects, having a total capacity of 4,630 MW.
Tenaga has the right to invest in Chhattisgarh and other assets any time within the next five years.
GMR Energy Chairman GBS Raju said, "This collaboration once again signifies GMR's commitment and ability to successfully execute strategic partnerships to create value for all its stakeholders."
Moelis & Company acted as the financial advisor to GEL. White & Case, Cyril Amarchand Mangaldas and Krishnamurthy & Co acted as legal counsel for GEL.
GMR group Chairman G M Rao said: "India's substantial and

sustained economic growth will require collaboration from all stakeholders in the power sector. The Prime Minister has set a vision of 24x7 power for all by 2022... We believe our partnership with a major power sector player like Tenaga is one of the steps to implement the Prime Minister's vision."
According to GMR Energy Chairman G B S Raju, the collaboration "once again signifies GMR's commitment and ability to successfully execute strategic partnerships to create value for all its stakeholders".
Moelis & Company acted as the financial advisor to GEL. White & Case, Cyril Amarchand Mangaldas and Krishnamurthy & Co acted as legal counsel for GEL.

For Tenaga Nasional Berhad, Credit Suisse AG acted as the transaction advisor while Slaughter & May and Khaitan & Co served as the legal counsel and KPMG the regulatory and financial advisor.