Mar 05, 2013, 10.37 AM | Source: Reuters
GMR Group (GMRI.NS) said it would sell its 70 percent stake in the Island Power Project in Singapore to FPM Power Holdings for S$660 million.
The group will net a profit of Rs 1356 crore from the sale, which it will use in its domestic energy business where it is currently developing power projects totaling 5,790 megawatts, GMR said in a statement on Monday.
The gas-fired Island project is currently 96 percent complete and is expected to start operations by end-2013, GMR said. Malaysia's Petronas holds the remaining 30 percent in the project.
Shares in GMR rose nearly 4 percent in a weak Mumbai market ahead of the deal announcement.
The cash-strapped Indian group has been looking to divest stakes in non-core assets since last year. Last month it sold a majority stake in a road project in India. GMR Infrastructure , a unit of the group, held net debt of nearly $7 billion at end-December and posted a net loss for the December quarter.