Plan To Buy Siemens 12% Stake In Paguthan

With the fresh funds injection, PowerGen India is planning to to acquire the 14 per cent Siemens stake in the 655 mw Paguthan power project in Gujarat.

Company sources said under an already-struck deal, the Siemens equity would be priced at Rs 26 per share.

The UK major's holding in the project rose to 74 per cent after it took over the original promoter, the Torrent group's stake for Rs 1,100 crore.

The third stakeholder in the project is the state-owned Gujarat Power Company Ltd, with a 12 per cent holding.

The sources said PowerGen wanted to use Paguthan to generate funds for its Indian operations.

 

The project, however, figures in the list of companies which Goldman Sachs is assessing for selloff to raise funds after the takeover of LG&E Energy Corp in the US in February.

The Paguthan project has a security package, including a state government guarantee, which gives protection against any default in tariff payments.