Date:30/05/2007 URL: http://www.thehindubusinessline.com/2007/05/30/stories/2007053004841100.htm

Back DS Constructions set to buy Globeleq unit

Our Bureau

New Delhi May 29 DS Constructions Ltd, in a 50:50 per cent partnership with Israel Corporation, has won the rights to acquire a unit of Globeleq International for $568 million.

The unit, called Globeleq Americas, is located in Bermuda and holds eight operating power companies involved in the production and sale of electricity in South America and the Caribbean.

"These companies have a total capacity of over 2,000 MW and are engaged in the production and sale of electricity," Mr R.Q. Khan, General Manager of DS Constructions, told Business Line.

"Some of the power plants that have been acquired as a part of this transaction are hydroelectric and natural gas powered as well.

"We and our partner intend to finance the transaction through equity capital and debt financing."

According to sources involved in the transaction, the deal is subject to approval by the regulatory authorities in Bermuda and is expected to be completed by June 18, by which date the entire sum will be paid in cash.

The major projects include a 1,400-MW hydroelectric and natural gas project in Peru, a 234-MW fuel oil-based project in Guatemala and a 220-MW hydroelectric and natural gas project in Bolivia.

Globeleq, a UK power investment company, has been actively selling parts of its global assets since announcing earlier in the year that it would exit power businesses worldwide.

In February, a unit of Lanco Infratech and Jindal Steel and Power acquired Globeleq's holding in Globeleq Singapore Pte Ltd.

London-based CDC Group Plc owns Globeleq Ltd.