AIG Highstar Capital II, L.P. (AIG Highstar II) and certain of its investment affiliates have completed the sale of its 50% interest in Intergen NV to infrastructure developer GMR Infrastructure Ltd. No financial terms were disclosed. InterGen is a global power generation company based in The Netherlands. It was acquired in 2005 by Highstar and Ontario Teachers’ Pension Plan.
InterGen N.V., headquartered in the Netherlands, is a leading global power generation company with operating power plants located across five countries with total gross capacity of 12,766 MW (8,086 MW of operational capacity and 4,680 MW of projects under development). InterGen’s operating plants are located in the UK, The Netherlands, Mexico, Australia and the Philippines. These facilities include 5,280 net equity MW in operation, 428 MW under construction, 523 MW under agreement.
InterGen was formed in 1995 and was purchased by Highstar and the Ontario Teachers’ Pension Plan (Teachers’) in 2005.
Commenting on the transaction, Highstar Founder and Managing Partner Christopher H. Lee stated, “The sale of our interests in InterGen continues a decade-long track record of successfully investing in infrastructure assets and businesses with sustainable downside protection, coupled with upside potential.”
Lee added that, “The investment was led for Highstar by Partners John Stokes and Michael Miller, who were instrumental in working with InterGen management to add value, including hands-on practical input to the business’ operations. We exit our investment leaving InterGen as a strong, well-capitalized company under the exceptional leadership of current CEO Neil H. Smith and his very capable team. We have greatly enjoyed working with management and our partners at OTPP during our ownership of InterGen. We are confident that GMR will be a great new partner for InterGen as it continues to the next level of well-deserved success.”
The transaction is expected to close in the third quarter of 2008, subject to regulatory approvals.
Lehman Brothers acted as financial advisor to Highstar and Sidley Austin LLP acted as Highstar’s legal council.