NEW DELHI: Tenaga Nasional Bhd (TNB) today announced its entry into India’s rapidly expanding power sector after it signed a Subsciption Agreement and Shareholders Agreement to invest in a 30 per cent stake in Indian power company, GMR Energy Ltd for US$300 million.
President/chief executive officer Datuk Seri 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, he said, 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.
“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, which will be financed by a combination of internal funds and/or external debt, is subject to the fulfilment of several conditions including obtaining regulatory approvals from relevant regulatory authorities both in India and Malaysia.