Lanco Infrastructure and Jindal Steel & Power buy Globeleq Singapore

Lanco Infrastructure and Jindal Steel & Power Limited (JSPL) have acquired Globeleq’s Indian assets by acquiring Globeleq Singapore. Lanco and JSPL will now implement the Rs. 16,000 crore-Ultra Mega Power Project (UMPP) in Sasan. Lanco and JSPL have purchased 60% and 40% shareholding, respectively, in the Singapore-based subsidiary of the investment arm of Department for International Development, the development agency of the British government. The consideration for the buyout has not been disclosed; Lanco management says that it is nominal.

Lanco has roped in Jindal Steel to address the concerns of the government over the successful completion of the project in the light of Globeleq’s exit from the consortium. Around two months ago, the Lanco-Globeleq consortium had emerged as the winning bidder of the Sasan project. Lanco had 30% stake, while Globeleq had 70% stake in the consortium. With the acquisition of Globeleq’s stake, Lanco will have 72% interest, direct and indirect, over the Sasan project while JSPL will have 28% stake. JSPL reserves the right to scale up its holding to 49% in the project in five years. The shareholders will chip in Rs. 3200 crores as equity contribution towards the project while the remaining Rs. 16,000 crores will be generated through debts. Lanco may also look at other assets of Globeleq which have been put up for sale.

Read the Business Standard article.
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