GE Power India’s board has approved the acquisition of 50 percent stake in NTPC GE Power Services (NGSL).
The cost of the acquisition or the price at which the shares are acquired is a cash consideration of Rs 7.2 crore.
The acquisition of shares of NGSL from GE Power Systems is a related party transaction as the company and GE Power Systems are GE Group Affiliates.
Upon completion of the acquisition of shares from GE Power Systems, the company will enter into renovation and modernisation of thermal power plants segment and partner with NTPC.
This investment and JV with NTPC is expected to strengthen the company’s portfolio and open avenues for expanded scope of business for future projects.
The indicative time period for completion of the acquisition is tentatively by 30 April, 2021.
NGSL is engaged in the renovation and modernisation of the existing power plants with primary focus on thermal power plants, and has also inter-alia ventured into supply, installation and subsequent operation and maintenance of thermal power plants.