TNB Completes 30% Acquisition of GMR Energy For US$300 Million
New Delhi, 4 November 2016 – Tenaga Nasional Berhad (“TNB”) today announced it has completed the acquisition of a 30% stake in Indian power company, GMR Energy Limited (“GEL”), for US$300 million pursuant to the definitive agreements executed on May 9, 2016.
The strategic investment in GEL by TNB will be made via its wholly owned subsidiary Power and Energy International (Mauritius) Ltd (“PEIM”) The completion of the transaction marks TNB’s entry into India’s rapidly expanding power sector with demand for electricity growing between 6%-7% CAGR, adding 20GW of new capacity annually, an amount equivalent to Malaysia’s current installed capacity.
The acquisition cements a strategic investment in GEL which has a portfolio of five operational power assets in India comprising coal, gas and renewable energy with a combined capacity of 4,630MW. An additional four power assets are currently under construction in India and Nepal with a future combined capacity of 2,300MW. Datuk Seri Ir. Azman Mohd, President/Chief Executive Officer of TNB, said: “Tenaga Nasional’s acquisition of 30% of GEL is a highly strategic investment that seeks to harness the future value of India’s large and supply constrained power market.
Strong growth in both the economy and energy demand coupled with a favourable energy policy framework means that this deal offers TNB attractive opportunities in the power sector on the sub-continent and establishes a strong foothold in the Indian power market.”
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