2010-11-29 10:50

MUMBAI - India's GMR Group said on Sunday it has agreed to divest its 50 percent stake in US-based power utility InterGen to China Huaneng Group for $1.23 billion to focus more on the Indian market.

The deal, which is subject to regulatory approvals, is expected to close in the first half of 2011, GMR said.

"This divestment will enable GMR Group to deploy further capital and release substantial management bandwidth to focus on its Indian Investments," said G.M. Rao, GMR Group chairman.

GMR acquired a 50 percent stake in InterGen, which owns power plants in Britain, Australia, the Netherlands, Mexico and the Philippines, in October 2008.

China Huaneng Group, a major shareholder of Huaneng Power International, is also considering buying the remaining stake in InterGen from Ontario Teachers' Pension Plan but no agreement has been reached, a media report said on Saturday.