Infrastructure major GMR Infrastructure Ltd has signed a definitive documentation for the acquisition of 50 per cent stake in Netherlands-based power generation company InterGen NV for $1.1 billion. GMR has signed the share purchase agreement with AIG Highstar to acquire the stake in InterGen The remaining 50 per cent stake in InterGen is owned by Ontario Teachers Pension Plan (Teachers’), the largest single-profession pension plan in Canada with $107.1 billion in net assets and $8.8 billion invested in infrastructure. GMR that has interests in energy, airports, highways and urban infrastructure claimed this transaction as the largest ever acquisition of an energy utility company by an Indian company. The company will pay $3,60,000 per megawatt, which is half the current cost for similar facility.InterGen is one of the world’s leading independent power producers with a high quality asset portfolio, with an average age of operating plants of only five and a half years. The power utility giant has power plants across five countries — the UK, the Netherlands, Mexico, Australia and the Philipines, with total net capacity of 12, 766 MW, of which operational capacity stood at 8,086 MW while remaining 4,680 MW of asset under development. Since the company’s inception in 1995, InterGen has developed, commissioned and operated over 20 different plants totalling over 16,000 MW of generation capacity in 10 different countries.“The acquisition of a 50 per cent equity stake in InterGen NV is an integral part of our global strategy to be the world’s leading energy and infrastructure company. This acquisition will provide us a platform to expand in InterGen’s existing geographies and new geographies of strategic importance to both GMR and Teachers’. Such growth will be supported by the strong management, high quality assets and a partner like Teachers’, which is also a leading global infrastructure investor,” said G M Rao, chairman of GMR Group, in a statement. InterGen NV’s total proportional turnover is approximately $1.65 billion and total proportional EBITDA is $613 million for the year ending December 2007. Explaining the alignment of interests, Rao said: “Our core experience in the ‘energy business life cycle’, covers identifying opportunities, developing assets in greenfield areas, strong project management skills, financial structuring and efficient operations. We found the same expertise in InterGen, which encouraged us to go ahead with the acquisition and synergise our growth. InterGen has consistently achieved economic returns in developed markets, comparable to those in emerging markets.”Power crunching$1.1 bn The cost of GMRs’ acquired stake in InterGen 35-40 yrsThe remaining shelf life of InterGen plants16,000 MW InterGen’s total generation capacity$3,60,000 The amount the company will pay per MW
