An announcement came from the company GMR Infrastructure today of its plans to sell off its 30% stake of the Singapore based subsidiary GMR Energy. This sale would be done to the Malaysian Oil and gas major company named Petronas. The amount of the deal remains undisclosed as of now. The subsidiary of Petronas named Petronas International Corp Ltd. Would be the buyer of this stake sale.
GMR Energy is underway of developing a 800 MW Combined Cycle Gas Turbine power plant at the Jurong Island of Singapore. The power generating facility is said to be constructed with the consortium of Siemens and Samsung. As per the company the new relation created with this deal opens up a wide gate for both Petronas and GMR.
This would be a symbolic South Asian collaboration which could have an immense potential for providing energy in the concerned region. The power plant is fuelled by re-gassified LNG and is stated to commence its commercial operations from the year 2013.
From the side of Petronas this acquisition marks group’s maiden entry to the international power markets which is a major step and development for the company. This would help it to extend its existing integrated presence further adding to its already good value chain. GMR Supply Singapore is a wholly owned subsidiary of the GMR Energy which holds the electricity license in and around Singapore managing the retail business in the region. The head quarters of the company is a GMR group in Bangalore.
Bell the Bull says: A major decision on the part of GMR group for selling its 30% stake.