Bengaluru: GMR Infrastructure said on Monday that it has approved the proposed primary capital investment by Malaysian power utility Tenaga Nasional Berhad (Tenaga) in GMR Energy Ltd (GEL).
GMR Group said in a statement here that subsidiary GMR Energy will divest 30 percent of its assets to Tenaga.
“The investment represents 30 percent equity stake in a select portfolio of GEL assets on fully diluted basis, for cash consideration of $300 million,” GMR said.
Tenaga is Malaysia’s largest power utility player with a total installed capacity of 10,818 MW, the statement said.
“Through this partnership, GMR Group is bringing a world class power developer and operator in the Indian market. Tenaga’s experience would further facilitate GEL in improving the performance of its operational assets and develop its underdeveloped pipeline of hydro and renewable energy assets,” it added.
GMR Infrastructure said the funds invested would primarily be utilised for repayment of its corporate debt.
“This would lead to a reduction in GIL consolidated corporate debt and will result in a stronger balance sheet,” it said.
According to the group, GEL will manage a balanced portfolio of coal-based, gas-based and renewable power projects having a total capacity of 4,630 MW.
“Further, Tenaga has the right to invest in Chhattisgarh and other assets at any time within the next five years,” GMR said.