GMR mulling offers for InterGen

InterGen owns power plants in the United Kingdom,Australia,the Netherlands,Mexico and the Philippines. The company has a combined generation capacity of more than 8,000 megawatts.

Bangalore-based GMR Infrastructure bought 50 percent of InterGen in 2008 for 1.1 billion from a fund owned by American International Group Inc. The rest of InterGen is owned by Ontario Teachers8217; Pension Plan.

8220;If we are making some money and if we can use that cash for our domestic projects may be that would be a justification,but we have not thought about anything,8221; Amarthaluru said.

Tata Power Co was in talks to buy GMR8217;s InterGen stake for 1-1.2 billion,a source with direct knowledge of the situation said.

News reports earlier this month said China8217;s Huaneng Group was also eyeing the holding.

8220;We don8217;t have any particular figure in mind. Of course,we would look at the value proposition,which means we need to make some decent returns on this,8221; Amarthaluru said.

ADEQUATE CAPITAL

GMR,which builds and manages infrastructure projects such as airports,roads and power plants,has shelved plans to raise up to 50 billion rupees 1.1 billion as it had enough capital to fund its ongoing projects for the next two years,he said. The Bangalore-based firm has raised 315 million by selling shares to institutional investors this year,and another 300 million through private equity placement in its energy unit,GMR Energy.

8220;This 615 million capital,along with the cash that8217;s already available in the system would be adequate to meet the equity requirements of all the ongoing projects over the next two years,8221; Amarthaluru said.

The company hopes to make a public issue in about two years for GMR Energy,whose investors include Singapore wealth fund Temasek.

8220;You have to go for an IPO to give an exit to the private equity. The timing is something that we need to decide 8230; timeline could be around two years.8221;