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Nov 10, 2010, 03.30 PM IST
GMR Infrastructure's talks to sell its 50% stake in power company Intergen have "significantly progressed," Chief Financial Officer Subbarao Amarthaluru said on Wednesday, declining to give further details.
The conglomerate plans to raise USD 600 million for its Singapore unit, Island Power, Group Chief Financial Officer Subbarao Amarthaluru told reporters in the south Indian city.
"The progress has been significant," Amarthaluru said about the firm's plans to sell half its stake in InterGen.
Amarthaluru, who declined to give further details, said providing a "timeline would be difficult".
In August, Amarthaluru told Reuters that InterGen had received 5-6 unsolicited offers to buy its stake in the power producer, and said GMR was examining the options.
InterGen - which has combined power generation capacity of over 8,000 megawatts - owns power plants in the United Kingdom, Australia, the Netherlands, Mexico and the Philippines.
Sources and media reports have said Indian utility Tata Power Co Ltd and China's Huaneng Group were vying to buy GMR's 50% stake in the power producer for roughly USD 1 billion.
GMR Infra - which had won a bid to build, operate and expand Maldives airport in June - expects the venture to come on stream and contribute USD 150 million a year starting in December, he said.
GMR Infra has a current net debt of 15.50 billion rupees, and ths is expected to rise for the fiscal year ending March 2011, Amarthaluru said. He did not elaborate.
GMR Infra is planning to raise USD 100 million in equity and USD 500 million in debt for its Singapore unit Island Power, said Bhaskar Rao, GMR Group's chief financial officer-corporate integration.
The company expects to secure the funds by March 2011, Rao said. Island Power was also seeking a long-term debt facility and standby letter of credit facility to support its operations.
Shares in the company were nearly flat at Rs 53.95 in a weak Mumbai market.
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