GMR Infrastructure Limited (BSE:532754), GVK Power & Infrastructure Limited (BSE:532708) and Lanco Infratech Limited (BSE:532778) have shown interest to acquire stake in re-gasified liquefied natural gas project owned by Andhra Pradesh Gas Distribution Corporation Limited. Andhra Pradesh Gas Distribution is equally owned by AP Gas Infrastructure Corporation (APGIC) and GAIL (India) Limited (BSE:532155). “APGIC and GAIL Gas together hold 50% in the SPV and the British firm GDF Suez LNG holds 26%, while the balance 24% will be sold to private investors with a cap of 7-8% each," a senior bureaucrat from the energy department told Economic Times. "Apart from the independent power producers, few other gas consuming industrial entities have also shown interest to pick up minority stakes", said the bureaucrat.

Power companies are seeking to to acquire minority interest in AP Gas Distribution Corporation, a joint venture between AP Gas Infrastructure Corporation and GAIL Gas Ltd. The interested companies include GVK Power & Infrastructure Limited (BSE:532708), GMR Infrastructure Limited (BSE:532754), Lanco Industries Limited (BSE:513605) and other gas consuming industrial entities. APGIC and GAIL Gas together hold 50%, with GDF Suez Global LNG (UK) Ltd. holds 26% while the balance 24% will be sold to private investors with a cap of 7% to 8% each.

GMR Infrastructure Limited (BSE:532754) is in talks with potential investors such as Morgan Stanley Infrastructure Partners, L.P., Court Square Capital Limited, SBI Macquarie Infrastructure Management Pvt., Ltd., and ICICI Venture to divest stake in GMR Pochanpalli Expressways Limited; GMR Ulundurpet Expressways Private Limited; GMR OSE Hungund Hospet Highways Private Limited; and GMR Hyderabad Vijayawada Expressways Private Limited and raise about INR 18 billion to cut debt. GMR has received expressions of interest from these prospective investors, said three senior industry official close to the transaction. "The funds are expected to start due diligence of the road assets shortly and complete the stake purchase in six months. The assets are not offered as one block," said one of the officials. Arun Bhagat, a spokesperson for GMR, said: "As a company policy, we are unable to comment on price-sensitive information and speculative news." According to Economic Times, spokespersons of Morgan Stanley Infra Fund, Citigroup Venture Capital, SBI Macquarie and ICICI Venture did not respond to e-mail queries. "Projects like Hyderabad-Vijaywada would fetch better valuation as it connects two major cities of Andhra Pradesh. Hence, the company may look to raise INR 18 billion from these four assets," said an industry official.