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		Gayatri Energy Ventures Private Ltd (GEVPL) and NCC Infrastructure Holdings Ltd (NCCIHL), have entered into definitive agreements with Sembcorp Utilities Pte Ltd (SCU) of Singapore, a wholly owned subsidiary of Sembcorp Industries Ltd, for divestment of 45% of the stake in NCC Power Projects Limited (NCCPPL).&nbsp;</div>
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		GEPVL &nbsp;and NCCIHL, subsidiaries of Hyderabad Gayatri Projects and NCC Limited respectively , jointly own NCC Power Projects Limited, which is implementing &nbsp;the Rs 7,000 crore, 1,320 Mw coal fired power project near Krishnapatnam in &nbsp;Andhra &nbsp;Pradesh.&nbsp;</div>
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		According to Gayatri Projects vice president (finance) K G Naidu, the value of the deal is over Rs 800 crore. NCCPPL has an equity base of Rs 2,000 crore. The transaction is expected to be closed in a span of one month.</div>
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		Upon completion of the transaction, SCU will hold 45% stake of NCCPPL. The remaining 55% will be held by NCCIHL, which in turn will be jointly owned by NCC and GEVPL in the ratio of 55:45. Thus, the final shareholding in the company after the transaction will be SCU 45%, NCC 30.5% and Gayatri 24.75%.&nbsp;</div>
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		Naidu told Business Standard that both NCC and Gayatri were planning to sell an additional 20% stake of NCCPPL to SCU, reducing their combined shareholding in the company to 35%. They would be applying to the regulatory authorities concerned for permission in this regard. &nbsp;</div>
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		NCCPPL would enter into additional conditional agreements, which would give SCU right and obligation to acquire a further stake of up to 20% in the company.</div>
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		In fact, SCU earlier wanted to acquire the entire 55% stake of NCC in the power project but had to drop its plan due to regulatory hurdles. Instead, it purchased the 45% &nbsp;stake of Gayatri in the company. &nbsp;&quot;As per the existing regulatory framework, we ( NCC and Gayatri) have to hold 55% stake&quot;, Naidu said. &nbsp;&nbsp;</div>
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		SCU has over 5,900 Mw of power capacity installed and under development and operates in six continents with an established presence in Asia and a strong growing presence in emerging markets around the world.&nbsp;</div>
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		&ldquo;We are delighted to have Sembcorp as our partner who have proven global expertise in implementation and management of such large projects. We are certain that the project will immensely benefit out of this partnership and we will be able to achieve commercial operations as per schedule.&rdquo; NCC managing director, &nbsp;A Ranga Raju, &nbsp;stated in a press release.</div>
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		Gayatri Projects managing director, TV Sandeep Reddy, said that Sembcorp induction would provide a much needed impetus to the project as it puts to rest apprehensions surrounding its ability to start commercial operation on time. &quot;We are now focused on finishing the execution work on the project and are hopeful of achieving the commissioning of the same on time.&rdquo;</div>
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		Hyderabad-based Capital Fortunes Private Limited, acted as the sole advisor to NCCPPL and its current shareholders on this transaction. Capital Fortunes had also handled the financial closure in early 2012 for NCCPPL.</div>
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Gayatri Energy Ventures Private Ltd (GEVPL) and NCC Infrastructure Holdings Ltd (NCCIHL), have entered into definitive agreements with Sembcorp Utilities Pte Ltd (SCU) of Singapore, a wholly owned subsidiary of Sembcorp Industries Ltd, for divestment of 45% of the stake in NCC Power Projects Limited (NCCPPL)

Sembcorp to acquire 45% stake in NCC-Gayatri power project

The remaining 55% will be held by NCCIHL

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