Slaughter and May, Hong Kong, advised Tenaga Nasional Berhad (Tenaga) in relation to the proposed subscription, through its wholly owned subsidiary Power and Energy International (Mauritius) Ltd. (PEIM), for equity shares in GMR Energy Limited (GMR Energy) and its proposed strategic partnership with GMR Energy in the power production business in India. The proposed 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 is 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.

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.
Contacts

Corporate and Commercial: David Watkins (partner), Ben Heron (associate); Tax: Gareth Miles (partner), Mike Ringer (associate)