Sumeet Chatterjee and Saeed Azhar
Deal could be signed as early as Friday – source
Singapore state investor Temasek Holdings will invest $200 million in the power unit of Indian conglomerate GMR Infrastructure (GMR), said two sources with knowledge of the situation. Temasek will invest in GMR Energy through a structured paper that will be converted into equity, one of the sources told Reuters, adding a deal could be signed by the two companies as early as Friday.
Officials at Temasek and GMR Infrastructure declined to comment.
The Temasek investment, which will be done via a fully owned subsidiary, would help GMR Energy to boost power generation capacity over the next three to four years, said the source.
GMR Energy plans to boost output to 6,500 megawatts from the current 800 megawatts over the next 3-4 years, sources have told Reuters earlier.
GMR, based in the southern Indian city of Bangalore, builds and manages airports, roads and power plants in Asia’s third-largest economy and it has benefited from the government’s focus on infrastructure.
Its operations outside India include power plants in Europe, Mexico and Australia, and the Istanbul airport.
In December, sources told Reuters that GMR is in advanced talks with Temasek to raise $150 million by selling shares in its power unit.
Ahead of the news, shares in GMR Infrastructure ended down 0.1 percent at 61.35 rupees in the main Mumbai market .BSESN that fell 1.42 percent.