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.
IndiaÆs 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 the deal.

InterGen has ownership interests in 12 operating power plants including one power plant under construction in the Netherlands with gross capacity of 8,258MW and a further 4,822MW of assets under development. Its...
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