Mountside, the consortium that owns a 20% stake of the 400-megawatt power plant, has a deadline of this week to exercise its preemption right, but is now considered extremely unlikely to do match the GE Capital bid, now that Gama is retaining a 40% stake.

Gama had considered the options of selling either 80% or 40% of the company, and interest parties were invited to submit bids for both alternatives. Losing bidders included Australian Babcock & Brown and Macquarie, Japan's Sumitomo Mitsui Banking Corporation and electricity producer International Power.

GE Capital is set to pay 40m upfront for the 40% stake in the company, but is expected to pay a total of up to 60m for the stake, after leveraging the company. The company is familiar with the Tynagh plant as it was involved in its construction.