Slaughter and May, Hong Kong, advised Tenaga Nasional Berhad in relation to the subscription, through its wholly owned subsidiary Power and Energy International (Mauritius) Ltd. (PEIM), for equity shares in GMR Energy Limited and its proposed strategic partnership with GMR Energy in the power production business in India.
The subscription will give PEIM a 30% stake in GMR Energy on a fully diluted basis for a total cash consideration of US$ 300 million.
The transaction was announced on 9 May 2016 and was subject to (amongst other things) the completion of a group restructuring of GMR Energy and approval from Bank Negara Malaysia, the Ministry of Finance of Malaysia and the Competition Commission of India. Completion of the subscription was announced on 4 November 2016.
Tenaga is primarily involved in the business of generation, transmission, distribution and sale of electricity. Through its subsidiaries, Tenaga is involved (among others) in the manufacture of transformers, high voltage switchgears and cables and the provision of consultancy services, education and training services and repair and maintenance services and research and development.
GMR Energy is a part of the GMR Group, which is one of the largest diversified infrastructure conglomerates in India.
Slaughter and May advised Tenaga Nasional Berhad on the deal with a Corporate team led by David Watkins (partner, in picture), alongside Ben Heron (associate); and on Tax law acted Gareth Miles (partner) and Mike Ringer (associate).
Law Firms: Slaughter and May;
Clients: Tenaga Nasional Berhad;