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Sep 20, 2011, 08.39 PM IST
PTC India Financial Services (PFS) will swap its holding in East Coast Energy, a part of Asian Genco for a stake the in Singapore-based energy firm.
The Foreign Investment Promotion Board (FIPB) has approved the share swap proposal. Once the transaction is complete, PFS would have some stake in Singapore's Asian Genco Pte Ltd, an infrastructure group with significant investments in the Indian power sector.
With the proposed swapping of shares, PFS would have the advantage of owning a stake in Asian Genco, which has diversified assets. "This would boost our financial profile as well as the value for investors," a PFS official told PTI.
Asian Genco owns East Coast Energy which is in the process of developing a 2,640 MW coal-based thermal power plant Andhra Pradesh.
PFS has about 13.87% equity stake in East Coast Energy and invested about Rs 133 crore in the company, sources said. As per the arrangement, PFS would swap its shareholding in East Coast Energy for stake in Asian Genco.
The valuation and related factors of the deal is expected to be finalised in the next 2-3 months. Till then, it would not be possible to ascertain how much stake PFS would have in Asian Genco, sources said.
PFS, which is part of power trading solutions provider PTC India, reported a profit of Rs 10.24 crore in the June quarter. Asian Genco has projects having a capacity of 4,000 MW under construction. The projects include three hydel power projects in Himachal Pradesh and Sikkim as well as wind farm in Gujarat, according to its website.
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