Malaysia: Tenaga Buys Into Indian Energy GMR Announces Strategic Investment of 300 Million Dollar from Tenaga, Malaysia

Editor: Dominik Stephan

The Management Committee of GMR Infrastructure (GIL) has approved the proposed primary capital investment by Tenaga Nasional Berhad (Tenaga) in GMR Energy (GEL).

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(Picture: Ernhofer/PROCESS)

Bengaluru/India – The investment represents 30 per cent equity stake in a select portfolio of GEL assets on fully diluted basis, for cash consideration of US $ 300 mn. Tenaga is the largest power utility player in Malaysia with an integrated presence across the value chain of power generation, transmission and distribution. With a total installed capacity of 10,818 MW and 50 per cent market share of the Malaysian grid’s generation capacity, it has strong pedigree and backing of the Malaysian Government. Further, it has significant experience in managing and operating power assets with several thermal power plants, large hydro plants, power distribution business and supporting O&M of independent power producers (IPPs) all over Southeast Asia, South Asia and Turkey.

Through this partnership, GMR Group is bringing a world class power developer and operator into the Indian market. Tenaga’s experience would further facilitate GEL in improving the performance of its operational assets and develop it’s under development pipeline of hydro and renewable energy assets. The synergies that would be created will lead to a long and strong partnership benefiting both GEL and the Indian power sector.

The funds invested would primarily be utilized for repayment of corporate debt. This would lead to a reduction in GIL consolidated corporate debt and will result in a stronger balance sheet. GEL will manage a balanced portfolio of coal based, gas based and renewable (hydro & solar) power projects having a total capacity of 4,630 MW. This portfolio would have an operating capacity of 2,300 MW and pipeline capacity of 2,330 MW.

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