Monday, February 5, 2007

Reliance Energy to bid for Globeleq's global assets

Domestic power major Reliance Energy will bid for the global assets of operating power company Globeleq in the four blocks of Asia, Africa, the Americas and Egypt. Globeleq recently partnered Lanco Infratech to win India’s first ultra-mega power project at Sasan in Madhya Pradesh. Globeleq’s operations, valued at $2 bn, span over 13 countries and accounts for about 5000 MW in 13 power companies. Globeleq’s stake, most of which is in gas-based power plants, totals to about 3000 MW. Lehman Brothers has been mandated to carry out the transactions. Reliance Energy, which is planning to develop several power projects in India including the gas based power project in Dadri, has set its eyes on these assets and is expected to put in an indicative bid by mid-February.

Globeleq was set up by the UK Government’s Department for International Development (DFID) as part of its strategy of promoting the private sector in the developing world. DFID launched Globeleq in 2002 as the power sector arm of its own CDC Group. In January 2004, it separated Globeleq as a stand-alone concern to run CDC’s power portfolio. CDC, Globeleq’s sole shareholder, has $3 billion in net assets and its investment is managed by Actis, the private equity fund manager specializing in emerging markets.

Read more in the article in The Economic Times.

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