Blackstone Buys 25.2% In Visa Power For Rs 500 Cr
Blackstone Group has invested Rs.500 Cr ($111 Mn) in 
Visa Power Limited, for 25.2% stake in the company. The deal values Visa Power at around Rs.2000 Cr.
The funds will be used for Visa Power's 1,200 MW power plant in Chhattisgarh.
This is Blackstone's third investment in India's power generation sector which includes Moser Baer Projects Pvt Ltd and Monnet Ispat & Energy Ltd's power subsidiary Monnet Power Company Ltd.
JM Financial is the sole advisor to the transaction.
Transaction Reference: Times Of India
According to last week's news reports, Blackstone, which had been in talks with Visa Power for the last six months, decided to back out of final stage talks to invest about Rs.500 Cr in Visa Power, as Visa Power had started negotiating with other PE firms in parallel for a better valuation. But with the recent deal, it seems, that the talks were reiterated.
Visa Power is part of Kolkata-based Visa Group, which has interests in steel, power, mining, commodities trading, shipping and logistics. The group was founded by Vishambhar Saran, a former Tata Steel executive.
Visa Power had signed an agreement with the Chhattisgarh government in 2007 to set up a 1,200MW coal-based plant in the state at a cost of Rs.6,200 Cr. The plant is to be commissioned in 2013 and has been allotted 99.12 MT of coal from Fatehpur East coal block.
Besides the Chhattisgarh plant, Visa Power also has a pipeline of further 6,600 MW under development, including a 1,320-MW coal-based super critical power plant in Orissa. The company also proposes to set up projects in Gujarat, Madhya Pradesh and Jharkhand.
Some PE deals in power generation space in last two years include, 3i India, Actis and GIC's $326 Mn investment in GVK Energy, Temasek's $200 Mn investment in GMR Energy and Macquarie-SBI Infrastructure's $130 Mn investment in MB Power Madhya Pradesh Ltd, a subsidiary of Moser Baer Projects Pvt Ltd.
Till date, Blackstone has invested around $1.7 Bn across 13 deals in India. Last month, it sold its entire 67% holding in Intelenet for $420 Mn to Serco Plc. Blackstone invested $200 Mn in the firm in 2007, which translates to a 110% return over four years.
Recently Blackstone bought 1.87% stake for Rs.60 Cr in Monnet Ispat Ltd, through bulk deal and invested Rs.150 Cr in FINO Ltd, which provides technology solutions for banks and MFIs.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 15/12/11 | Visa Power - Funds Raising | Private Equity | Looking For | 98.80 |
| 03/12/10 | Visa Power - Blackstone | Private Equity | Blackstone Advisors India Private Limited | 100.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 02/05/12 | Private Equity | Looking For | Husk Power Systems Private Limited | - | Announced |
| 28/03/12 | M&A | STEAG GmBH | Hinduja National Power Corp. Limited | - | Announced |
| 22/03/12 | M&A | Korea Electric PowerCorp | Pioneer Gas Power Limited | 98.37 | Announced |
| 24/02/12 | M&A | Tecpro Systems Limited | Eversun Energy Private Limited | - | Completed |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Blackstone Advisors India Private Limited | IT/ITES/Technology Media BFSI Healthcare Travel & Leisure |
http://www.blackstone.com | Amit DixitAkhil GuptaMathew Cyriac | |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Visa Power Limited | VISA Group | HUL Building, 2nd Floor 9, Shakespeare Sarani, |
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