On April 11, China Huaneng Group and Guangdong Yudean Group announced that Overseas International Industrial Co., Ltd (the joint venture of the two companies) successfully acquired 50% stake of InterGen from India-based GMR Group with a bid of USD 1.232 billion.
InterGen is a world-class power company with 12 power plants located in five countries in four continents (the UK, the Netherlands, Mexico, Australia, and the Philippines) representing a total generation capacity of 8,146 MW and an net equity capacity of 6,312 MW, of which nearly 90% comes from clean and efficient NGCC assets (natural gas combined cycle). It also has several development projects underway.
Overseas International Industrial Co., Ltd is a joint venture between China Huaneng Group and Guangdong Yudean Group, in which Huaneng holds 60% stake while Yudean holds 40%. As the purchaser, Overseas International Industrial signed a Purchase Agreement with GMR Group at the end of November 2010.
This acquisition makes China Huaneng Group the most global Chinese power producer with power assets most widely distributed all over the world. "This transaction will help accelerate internationalization of China Huaneng Group." said Huang Long, Vice President of China Huaneng Group, "the power assets of InterGen have promising prospects. After becoming shareholder of InterGen, China Huaneng Group will be able to contribute significantly to the development of InterGen."
According to some analysts, through this acquisition, both China Huaneng Group and Guangdong Yudean Group will strengthen their power business and enhance their capability in international operations, and will also greatly increase their proportion of clean energy, which will be conducive to their power structural adjustment and green development.
About GMR Group GMR Group, headquartered in Bangalore, is a global leader in the infrastructure industry, with interests in airports, energy, highways and urban infrastructure. It has successfully formed a high-quality asset portfolio using public-private partnership. Besides the stake in InterGen sold this time, it also owns another 14 power projects, and 9 road projects. In the field of airports, the company runs four international airports in Delhi, Hyderbad, Istanbul, and the Maldives. The Group is also dedicated to social benefit programs and runs relevant social undertakings through its CSR department GMR Varalakshmi Foundation.