Hyderabad, August 31
GMR Coal Resources (GCRPL), a step-down subsidiary of GMR Power and Urban Infra Limited, on Wednesday said it has entered into definitive agreements to divest 30% equity stake it holds in PT Golden Energy Mines Tbk (PT GEMS) to PT Radhika Jananta Raya for $420 million and also a deferred consideration.
PT GEMS is an Indonesian bituminous coal mine operator, owning and operating five coal mining concession areas in that country.
PT Radhika Jananta Raya is a subsidiary of PT ABM Investama Tbk (ABM), an Indonesia-based integrated energy company for strategic investment, engaged in providing integrated mining solutions across the mining value chain.
“On closing, GCRPL will receive a gross consideration of $420 million. Further, GCRPL will also receive a deferred consideration based on mutually agreed milestones. The transaction is subject to customary approvals as applicable,” the statement said.
Commenting on the divestment, Grandhi Kiran Kumar, corporate chairman, GMR Group, said coming on the back of demerger and the group’s strategy to deleverage balance sheet, this divestment would provide impetus to the non-airport business through reduction of leverage and provide a platform to grow the green energy initiatives.
The divestment reiterates GMR Group’s strategy of focusing on its core infrastructure business and exiting non-core businesses, he further said. — PTI
$420-million transaction
- GMR Coal Resources, a step-down subsidiary of GMR Power and Urban Infra Ltd., will divest 30% equity stake it holds in PT Golden Energy Mines Tbk to PT Radhika Jananta Raya for $420 million
- PT GEMS is an Indonesian bituminous coal mine operator, owning and operating five coal mining concession areas in that country
- Further, it will also receive a deferred consideration based on mutually agreed milestones
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