GMR Infra May Sell Stake In InterGen To OTTP Fund

GMR Infrastructure Limited may sell its 50% stake in InterGen for about $1 Bn to Ontario Teachers’ Pension Plan.

GMR has appointed Bank of America-Merrill Lynch to explore options and potential buyers for its stake in InterGen.

At present OTTP owns the remaining 50% stake in InterGen and it will have the automatic first right of refusal

Transaction Reference: BS

InterGen is a power generation firm based in Massachusetts with 12 plants located in the UK, the Netherlands, Mexico, the Philippines and Australia. It has a capacity of 8,100 mega watts.

In October 2008, GMR Infra had acquired the stake in InterGen from AIG Highstar Capital II, L P and affiliates for $1.1

GMR had raised $937 Mn short-term debt to finance the deal through the overseas branches of several Indian banks, including Axis Bank, Canara Bank, Bank of India and Bank of Baroda.

Late last month, GMR had sought to refinance a debt of $737 million from a consortium of banks to pay earlier lenders.

There is a two-year moratorium on repayment of the refinanced debt and the repayment will begin in the 3rd year and would continue till the 5th year.

The dividends received so far from InterGen, at $32.5 Mn, has been lower than the interest costs it has had to bear on the acquisition debt.

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