Hyderabad-based Lanco Infratech has bought back the stake held by German financial institution DEG in Lanco Amarkantak Power Pvt Ltd, which is building a thermal power station in Korba district of Chhattisgarh.
Lanco said in a statement to Bombay Stock Exchange that it has bought the complete stake of DEG, which is the private sector arm of Germany's KFW, without disclsing the deal amount. Other shareholders of Lanco Amarkantak are KVK Energy Pvt Ltd and International Finance Corporation (IFC), the private investment arm of World Bank.
Lanco Amarkantak project is being developed in phases to ultimately become a 1920 MW power plant. DEG had invested in the power project in 2006 for a 9% stake. In 2007, IFC had invested $8 million in the project for a 5.84% stake, valuing the plant at $137 million. After the investment from IFC, the stake held by Lanco in the project stood at 75.16%.
Lanco Infratech shares closed at Rs 378 today, down by more than 5% today.