Goldman, Macquaire to buy 20% each in PTC Financial

BS Reporter / New Delhi January 2, 2008

Goldman Sachs Strategic Investments and Macquarie India Holdings have signed an agreement to acquire 20 per cent stake each in PTC India Financial services (PFS), the recently incorporated subsidiary of power trader PTC India, for about $40 million.

The two �strategic� investors will acquire the stakes through a fresh issue of shares by the subsidiary, set up to invest across the Indian energy value chain, a statement from PTC said.

The Foreign Investment Promotion Board (FIPB) had earlier approved the equity partnership in PFS. This will be a non-banking finance company, which will extend equity and debt financing to power projects. �The two companies will pay a premium of Rs 6 on each share of Rs 10,� an official informed.

PTC will hold the remaining 60 per cent in the company. N M Rothschild & Sons (India) was the advisor on the transaction.

�PFS is well-positioned to benefit from the growth in Indian economy on the back of PTC�s significant experience. Goldman Sachs and Macquarie will offer unparalleled fund raising and investment execution capability,� the statement added.

PFS has already picked 26 per cent stake in Indian Energy Exchange, the country�s first Power Exchange. In addition, it is also expected to invest in greenfield and brownfield power generation assets, power transmission and distribution assets, and energy-related infrastructure assets such as gas pipelines, fuel-linked ports and electricity equipment.

PFS may also sponsor an energy fund and establish an asset management company.