GMR Power and Urban Infra Ltd to acquire additional stake in GMR Energy Ltd

GMR Power and Urban Infra Limited ("Company") has entered into a binding agreement with Claymore Investments (Mauritius) Pte. Ltd. ("Claymore") for the acquisition by the Company of 42,04,16,542 (FortyTwo Crores Four Lakhs Sixteen Thousand Five Hundred and Forty-Two) Equity Shares of GMR Energy Limited("GEL") (representing 11.66% of the equity share capital of GEL) from Claymore at a negotiated settlement price of Rs. 442 Crores ("Transaction").

The Transaction will consolidate the existing stake of the Company in GEL to about 99.08%. With this complete buy-out of Claymore's stake, and upon payment of the entire consideration of Rs. 442 Crores the Shareholders' Agreement with Claymore will stand terminated.

GEL was incorporated on October 10, 1996 and is engaged in the business of development, operation and maintenance of power projects, power generation, transmission, distribution and trading of electricity, through its subsidiaries.

The Transaction is between the Company and Claymore and Claymore is not a related party to the Company.

GEL is currently a subsidiary of the Company and of its promoter company, GMR Enterprises Private Limited. Other than the direct and indirect shareholding of these entities in GEL, there is no other interest the promoters or promoter group have in GEL or in the transaction.

Source : Equity Bulls

Keywords

GMRPowerandUrbanInfra BindingAgreement ClaymoreInvestmentsMauritius StakeAcquisition GMREnergy