Azman Mohd says the investment offers multiple avenues for growth in India’s power sector.
Malaysia’s Tenaga Nasional Bhd (TNB) has signed a Subsciption Agreement and Shareholders Agreement to invest US$300 million for a 30 per cent stake in Indian power company, GMR Energy Ltd.
President-chief executive officer Azman Mohd said TNB’s investment in GMR Energy meets all its investment criteria as the deal delivers tremendous potential and unlocks significant value.
This places TNB in prime position to benefit from India’s superior long-term electricity consumption growth potential, in one of the world’s largest emerging economies, he said.
“It also offers multiple avenues for growth in India’s power sector, beyond generation, with the prospect of pan- Indian development.
“We welcome the opportunity to enter into a long-term working relationship with a best-in-class strategic partner with in-depth knowledge of the Indian power market, bring together our respective strengths and unleash synergies that will allow TNB to create a strong foothold and maximise opportunities inherent in the Indian power market which is adding 20GW of power annually,” he said.
The investment, subject to regulatory approvals in India and Malaysia, will be financed by a combination of internal funds and or external debt. fii-news.com
