GMR Power & Urban Infra has entered into a binding agreement with Claymore Investments (Mauritius) (Claymore) for the acquisition by the Company of 42,04,16,542 equity shares of GMR Energy (GEL) (representing 11.66% of the equity share capital of GEL) from Claymore at a negotiated settlement price of Rs. 442 crore.

The transaction will consolidate the existing stake of the Company in GEL to about 99.08%. With this complete buy-out of Claymore's stake, and upon payment of the entire consideration of Rs. 442 crore the Shareholders' Agreement with Claymore will stand terminated.

GEL was incorporated on 10 October 1996 and is engaged in the business of development, operation and maintenance of power projects, power generation, transmission, distribution and trading of electricity, through its subsidiaries.

The Transaction is between the Company and Claymore and Claymore is not a related party to the Company.

GEL is currently a subsidiary of the Company and of its promoter company, GMR Enterprises. Other than the direct and indirect shareholding of these entities in GEL, there is no other interest the promoters or promoter group have in GEL or in the transaction.