Tenaga Nasional Bhd (TNB) generic photo. TNB logo seen in Seri Petaling. (Pic by M. Hafidz Mahpar for Star Online)
KUALA LUMPUR: Tenaga Nasional Bhd
(TNB) has entered into a conditional share subscription deal to buy a 30% stake in India-based GMR Energy Ltd (GEL) for US$300mil (RM1.21bil) cash, as part of its plan to secure new generation capacity internationally.
In a filing with the stock exchange yesterday, TNB said it sees the entry into India as an attractive investment opportunity because of its favourable economic outlook and stable political landscape, with a rapidly growing energy sector.
GEL, which is currently controlled by GMR Infrastructure Ltd (one of the largest diversified infrastructure conglomerates in India), has power assets with a proposed total capacity of 4,630 MW (currently its capacity is 2,300 MW).
TNB noted that GEL had a balanced fuel mix comprising coal (2,000MW), gas (623MW), renewable sources of hydro (1,980MW) and solar energy (25MW).
GEL’s major shareholders, apart from GMR Infrastructure, include Singapore-based investment firm Temasek Holdings Private Ltd (held via Claymore Investment (Mauritius) Pte Ltd) (12.35% stake after completion of the proposed subscription) and an India-based finance consortium led by IDFC Bank Ltd (5.54%).
Incidentally, GMR Infrastructure had sold a 30% stake in its Singapore arm, GMR Energy (Singapore) Pte Ltd, to Petronas International Corp in 2011. Since then, it had divested the remaining stake in that subsidiary. GMRE was developing an 800MW combined cycle gas turbine power plant in Jurong Island.
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