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French Energy major GDF Suez today said it picked up 74% stake in Meenakshi Energy and Infrastructure Holdings Pvt Ltd, which has power project of 300 MW of operational capacity and 700MW under construction in Andhra Pradesh.
Without disclosing the financial details, a statement issued by GDF said Meenakshi will retain the remaining 26% stake. The power project is located in Krishnapatnam in Nellore district along the east coast of the state.
GDF is also developing a floating LNG regasification terminal with GAIL with a capacity of 3.5 million tons per year (MTPA), located in Kakinada, in Andhra Pradesh.
"This initial project in India is in line with the Group's strategy of investing in fast growing markets and gives the Group an entry point into the Indian power sector through an economically attractive State. India has a growing demand for energy and a significant power supply deficit, Suez said in the statement.
When contacted, D Suresh, Chairman and Managing Director of Meenakshi Energy, said the project's cost would be Rs 6,000 crore with a debt-equity funding of 75:25.
Promoters are holding around 58% while, PTC Financial Services Limited (PFS) and IIFCL hold 15% and 25% stake respectively in the company.
Suresh told PTI that the outside investors will retire and they (promoters) will hold 26% after the deal is concluded.
In a separate statement, Meenakshi said KPMG India acted as exclusive financial advisors for Meenakshi Group on this transaction.
