GMR Group, an Indian infrastructure builder, agreed to sell its 70 percent stake in a Singapore power station development to a venture between First Pacific Co. and Manila Electric Co. (MER) for S$600 million ($482 million).
The venture, FPM Power Holdings Ltd., will invest a further S$60 million in the 800-megawatt plant that will burn liquefied natural gas, Bangalore-based GMR said in an e-mailed statement.
A 13.56 billion rupee ($247 million) gain on the sale will be used by GMR to speed up development of 5.5 gigawatts of power projects in India, it said. The company sold 30 percent of the Singapore development to Petronas International Corp. in 2011.
The plant, on Jurong island, is 96 percent complete and expected to begin operations by the end of the year. The stake sale needs approval from the project’s lenders and is due to close by the end of the month, according to the statement.
FPM is a venture between Hong Kong-based First Pacific and MERALCO PowerGen Corp., a unit of the Philippines’ biggest power retailer. The plant is held by GMR Energy (Singapore) Pte Ltd.
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