Leading infrastructure firm, Lanco Infratech, has acquired the stake held by German financial institution DEG in Lanco Amarkantak Power Pvt. Ltd. The Special Purpose Vehicle (SPV) was set to develop a thermal power station in Korba district of Chhattisgarh.

The Chief Financial officer of Lanco, said: "We thought this is the right time to buy the shares back. There is no specific reason for entering into this transaction." DEG will get Lanco shares at about Rs 11.40 per share, via a transaction of Rs 45.12 crore, through internal accruals.

DEG, executing a power project in Chhattisgarh, is now left with 9.8 per cent stakes in SPU, with 3,95,82,450 shares. The firm was the first company to pick minority stakes in the SPV for developing power project valued at about $140 million. Meanwhile, the transaction has increased Lanco's stakes in the project to 75.16%.

IFC had also acquired 5.8% stake in the SUV in 2007, with an investment of about $8 million,

Shares of Lanco Infratech declined more than 5 per cent and closed at Rs 378 today at the Bombay Stock Exchange.