India's GMR in $1.1 billion power acquisition

GMR Infrastructure buys 50% of the power generating firm InterGen from AIG Highstar in a deal that analysts have termed low-risk but expensive.

IndiaƆs GMR Infrastructure has bought 50% of InterGen from AIG Highstar for an equity value of $1.1 billion, in the largest ever acquisition of a global energy utility by an Indian company.

InterGen currently has $4.3 billion of debt on its books, suggesting GMR has ascribed a firm value of $6.5 billion to InterGen. The debt is non-recourse and was mostly syndicated in 2007. It does not have a change of control clause, say sources close to...

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