French energy major GDF Suez has acquired 74 per cent equity stake in Meenakshi Energy from its parent Meenakshi Energy and Infrastructure Holdings Pvt Ltd and PTC India Financial Services Ltd (PFS) in a deal estimated to be worth around Rs 926 crore ($150 million).
Meenakshi Energy has thermal power projects representing 300 MW of operational capacity and 700 MW under construction in Andhra Pradesh state. The power project is situated in Krishnapatnam in Nellore district along the east coast of the state.
“This initial project in India is in line with the group’s strategy of investing in fast growing markets and gives the group an entry point into the Indian power sector through an economically attractive state. India has a growing demand for energy and a significant power supply deficit,” GDF Suez said in the statement.
Meenakshi Energy and Infrastructure will retain the remaining 26 per cent equity stake, the statement by GDF Suez said.
Financial details or structure of the deal, however, have not been disclosed, but PFS said in a separate statement that it has sold its entire 16.76 per cent stake in Meenakshi Energy for Rs 209.73 crore. Based on this valuation GDF Suez would have paid around Rs 926 crore for the 74 per cent stake.
“We are delighted to announce that we have successfully exited from one of our equity investments – Meenakshi Energy. We planned this exit keeping in view, the right opportunity and a robust return which will augment the company’s net worth,” PFS’ managing director and CEO RM Malla said in the statement.
Currently, GDF Suez is developing a floating 3.5 million tonnes per annum liquefied natural gas terminal with the state-run gas distribution and transmission company GAIL Ltd in Kakinada and Andhra Pradesh.
Also, it holds a 10 per cent stake in the LNG importer and terminal operator Petronet LNG.
Through Tractebel Engineering, GDF Suez recently acquired Cethar Consulting Engineers, which provides support to the Meenakshi Energy.
(Edited by Joby Puthuparampil Johnson)