GMR explores sale of US power firm stake

Indian firm GMR is looking at the possible sale of its 50 percent share in InterGen, the US power generation company. GMR is exploring options with a limited number of potential buyers for the asset, which is valued at around $1.1bn.

Indian infrastructure investor GMR is looking to sell its 50 percent stake in US power generation firm, InterGen, a source close to the company told Infrastructure Investor.

The source also said that the company is still in its initial planning stages with respect to the sale of the asset. The company is exploring options with a limited number of buyers at this stage.

According to media reports, the value of GMR’s stake in InterGen is approximately $1.1 billion and the company may decide not to sell if bidders do not meet price expectations.

Reports also suggest that this step comes at a time when GMR is focusing on increasing investment demands in India, with a large pipeline of power generation projects requiring heavy capital investment.

InterGen is based in the US and owns 12 power plants in the UK, the Netherlands, Mexico, the Philippines and Australia. The power plants have a generation capacity of more than 8,000 megawatts.

GMR acquired a 50 percent stake in InterGen from an AIG unit for $1.1 billion in 2008.