HYDERABAD: Lanco Infratech is eyeing at least two packages of Globeleq’s assets being put up for sale by advisors Lehman Brothers. Globeleq has assets of over $1.5 billion across Africa, Asia and the Americas totalling upwards of 2500 mw of generating capacity, some of which it is looking to exit in a major restructuring of the group’s businesses.
“We are interested in Globeleq assets in Egypt and some Asian countries”, Lagadapati Madhusudan, told DNA. Lanco is looking at the assets being hived off in four packages by Lehman Brothers and we could bid for them after examining the costing and other details, he said.
Formed in 2002 Globeleq is a subsidiary of the UK-based private equity firm CDC Group plc that focuses on emerging markets. This month Globeleq sold off Panama-based power company Globeleq Holdings Fortuna for a consideration of $161.3 million to Enel Investment Holdings BV of Netherlands. Likewise, it exited from the Lanco Kondapalli power project after selling off its 25% equity in the project to the Lanco group.
However, Madhusudan denied reports that Globeleq was exiting as the major investor in the Rs 16,000 crore Sasan ultra mega power project in Madhya Pradesh, which the combine won after aggressive bidding to beat the Tatas, Reliance Energy and NTPC.
Globeleq will invest upwards of Rs 2,240 crore towards the 70% equity in the 4,000 mw ultra power project. Interestingly, overseas investors like AES Corp. and Hong Kong based CLP group had pulled out of the race for Sasan mid-way through the bidding process.
Asked if there was a possibility of Globeleq exiting the project or if there was an option for bringing in a third partner into it, Madhusudhan said the bidding agreement allowed the promoters to bring in another partner with 49% equity into the Sasan project. While we are not considering such an option at this stage, it is possible we will bring in a financial investor at a later stage, he responded.
However, according to a senior Lanco official, the equity structure for the project was yet to be frozen and there is a possibility that a third partner could come in. Though there was some thought on the part of Globeleq to exit from Sasan, it has now decided to continue with the project, another company official told DNA.
