Cash-strapped infrastructure conglomerate GMR is selling its entire 70 per cent stake and exiting its first independent power project (IPP) outside India, the Island Power Project in Singapore. The move is part of its ongoing portfolio churn that will help the group pare its consolidated net debt of Rs 37, 681 crore as on December 2012. GMR on Monday signed a share purchase agreement with FPM Power Holdings Limited (FPM Power) - a 60:40 joint venture between Hong Kong headquartered investment company First Pacific and Meralco, a part of Philippines' biggest electricity retailer - to sell its controlling interest in the 800-megawatts gas-based plant for an equity value of S$660 million (Rs 2,923 crore). While GMR will receive S$600 million (Rs 2,640 crore) in hand, FPM Power will invest S$60 million to complete the project by the end of calendar 2013. So far, GMR has invested S$293 million as equity and the stake sale will fetch a cash premium of S$307 million (Rs 1,356 crore).

Source - http://economictimes.indiatimes.com