GMR Infrastructure, the Bangalore-based developer of power plant, airports, roads and urban infrastructure, is understood to be closing in on its second coal mine acquisition in Indonesia. The mine is expected to cost close to $150 million and has reserves of close to 200 million tonne.
GMR Group on Friday said it will divest its entire 40 per cent stake in Cebu international airport in Philippines for an upfront payment of Rs 1,330 crore as well as earnouts to be received over a period of more than four years. The airport is being operated by GMR-Megawide Cebu Airport Corporation (GMCAC) and GMR Airports International BV (GAIBV) holds a 40 per cent stake in the venture. A definitive agreement has been signed between GMR Airports International BV (GAIBV) and Aboitiz InfraCapital Inc (AIC) for the divestment of stake in Cebu airport.
Sources said GMR could be the first major Indian corporate to engage multiple auditors. GMR will also rotate the auditors at periodic intervals. The length of the rotation period shall be decided by the company board, based on the recommendation of the audit committee. GMR will also employ the services of reputed audit firms for specific assignments of audit as may be decided by the company's board from time to time on the recommendation of the audit committee.
Last year, the Philippine government had invited bids to upgrade the Mactan-Cebu International Airport, the country's second busiest airport.
Spanning 555 km, the project was to cost Rs 7,500 crore.
Infra major GMR is hopeful of maintaining strong order book.
GMR Energy, the holding company of GMR group's power business, said on Tuesday it will set up a 1,000 MW coal-based power project in Chhattisgarh.
The Tamil Nadu government on Monday entered into a joint venture with Hyderabad-based GMR Infrastructure Ltd to set up a multi-product Special Economic Zone in the state's Krishnagiri district at a cost of Rs 2,300 crore (Rs 23 billion).
The present offer is a third of Homeland Mining's initial valuation. GMR Energy, a part of GMR Infrastructure, had valued this coal mining firm at $310 million when it acquired a small stake in April 2008. "In our due diligence, we have found out that we had valued this firm much higher based on various factors such as how many layers one has to mine to access the worthwhile coal," a GMR Group official said.
Amid stiff global competition from major airport construction companies, a consortium led by Indian developer GMR has bagged an about Rs 11,000-crore (two-billion-euro) project to modernise Istanbul's second airport.
To this end, the group is consolidating its global assets under GMR Infrastructure International (registered in the Isle of Man) for a public issue in London, according to an executive who did not wish to be identified, in a move that largely replicates what metals behemoth Vedanta did six years ago.
'GMR Group today signed an agreement with the international power producer InterGen to acquire its 100 per cent ownership stake in Island Power,' GMR Infra said in a filing to the Bombay Stock Exchange. Island Power is currently developing an 800 MW power facility in Singapore. The project would bring in about $1.5 billion (Rs 72 billion) foreign direct investment in the country.
It claims that the Male Airport contract is "non-reversible and non-negotiable".
The move is aimed at securing coal supply to its proposed 1,500 mega watt plant in the western coast. The company is looking for locations in Maharashtra and Gujarat for the plant. The infrastructure firm has paid half of the acquisition amount upfront and the balance will be paid after commercial production begins two years from now. Coal from the mine would be shipped to the new plant during the time of power generation.
Delhi International Airport, a subsidiary of GMR Infrastructure, will absorb all general employees of Airports Authority of India, working at Indira Gandhi International Airport, New Delhi. There are over 2,300 general employees of AAI.
Infrastructure developer GMR Infrastructure said on Wednesday it has tied up with Plaza Premium Lounge of Hong Kong for maintaining and managing lounges at the New Hyderabad International Airport.
GMR Infrastructure on Tuesday said it plans to raise Rs 50 billion (Rs 5,000 crore) by selling shares in domestic as well as international markets.
Bangalore-based infra major GMR Infrastructure Ltd has completed divestment of 50 per cent stake in global power generation company InterGen to China Huaneng Group (CHG), said the company.
A private equity arm of Citibank has picked up the shares, representing 1.25 per cent stake, at Rs 270 per share, indicating the pricing of the IPO.
The company, which is bidding for 16 road projects worth Rs 10,000 crore (Rs 100 billion) this year from the National Highways Authority of India under the public-private-partnership model, intends to invest the money in the form of equity to set up special purpose vehicles to execute new road projects.
ADA Group's Reliance Energy and GMR Infrastructure are the two Indian firms that have been shortlisted in the bidding process to acquire Singapore's Tuas Power, one of the three power firms put on block.
GMR Infrastructure, which manages two airports in India, at Delhi and Hyderabad, seems hungry for more.
GMR Infrastructure, the co-developer of Delhi International Airport (DIAL) and Hyderabad International Airport (HIAL), is looking at bidding for privatisation of Prague airport in the second half of 2008, one of the more profitable state-run enterprises in East Europe.
Delhi International Airport Ltd move likely to impact revenue flow to government kitty.
Indian firm skips midnight ceremony Maldives terms takeover a victory for its people.
The ongoing dispute between the Indian company GMR Infrastructure and the Maldives government over the former's contract to build an airport for the Maldives' capital, Male, throws up some knotty questions.
The company also needs to get its power plants going if it wants to reduce its debt burden.
The Singapore government-controlled Temasek Holdings, which controls over 90 per cent of power generation and distribution in Singapore, will soon call for bids to privatise the two companies. The Indian companies are exploring various options to bid for these assets, said sources familar with the developments. Spokespersons of both Reliance Power and GMR Infrastructure declined to comment.
Asset sales have helped ease investors' worry but debt remains at alarming levels
Out of the total amount, Rs 9,780 crore would be towards secondary sale of shares by GMR group and Rs 1,000 crore would be equity infusion in GAL.
GMR Infrastructure is part of a consortium led by Philippines-based construction company Megawide Construction which submitted a bid of 14.4 billion Philippine pesos or around $326 million.
"We have held talks with equipment as well as fuel suppliers and will firm up a plan in the next one years time," GMR Energy Executive Vice-President Avinash R Shah told reporters. GMR Energy is a unit of GMR Infrastructure Ltd. Shah said the company has hired very experienced people from state-owned Nuclear Power Corporation, including former Chairman and Managing Director M R Srinivasan, for its nuclear foray.
GMR Infrastructure, which owns more than 900 acres in Delhi and Hyderabad airports, is planning to raise Rs 3,000 crore (Rs 30 billion) through land securitisation.
From handling a jute mill to doing global infrastructure projects, Rao has come a long way.
At present, the Mactan Cebu International Airport can handle seven million passengers a year
The consortium beat six others at an auction on Thursday
Anti-Corruption Commission rules out graft.
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