Speaking to the media after a board meeting of Gujarat Torrent Energy Corporation (GTEC) on Monday which saw the transfer of the entire equity of the Mehtas - owned Torrent Power Ltd amounting to 46.3 per cent to PowerGen - Gery Grove-White, general manager of PowerGen India Pvt Ltd, said that the investment would provide the company with "a platform for growth in the energy market in India, which is a key market for us".

PowerGen has acquired Torrent's equity in GTEC for Rs 1,100 crore giving it total management control over the project with an equity of 74 per cent. Grove-White said that PowerGen had acquired 337.34 million shares at Rs 33 per share which is more than the book value of the shares.

According to PowerGen officials, the company haspaid a premium for the acquisition which essentially reflects the "value of investment and inherent value of the business." While almost 80 per cent of the transfer price of Rs 1,100 crore would be financed through the foreign direct investment (FDI) route by way of PowerGen's existing corporate debt facility from the UK, the remaining 20 per cent amounting to around Rs 220 crore would be raised by way of short-term loans from ICICI, Grove-White said.

Following the finalisation of the deal, GTEC has also reconstituted the company's board by inducting several new board members. Nitin Shukla has been appointed the new managing director of GTEC. He was earlier executive director of GTEC. The chief secretary, Gujarat, LNS Mukundan, will retain his position as chairman of the company which "shows the state government's deep interest in the project."