A subsidiary of GMR Power and Urban Infra’s (GPUIL) has agreed to sell a 30% stake in Indonesian coal mine operator, PT Golden Energy Mines Tbk (PT GEMS), to Indonesia-based PT Radhika Jananta Raya for a gross consideration of $420m.
The definitive agreement has been signed by GPUIL unit GMR Coal Resources (GCRPL) with PT Radhika Jananta Raya, a subsidiary of mining solutions provider PT ABM Investama TBK.
GPUIL is a subsidiary of GMR Enterprises Private Limited (GEPL), the ultimate holding company of GMRGroup.
The stake sale in the Indonesian coal mine operator forms part of the group’s strategy to exit non-core businesses in order to focus on its core infrastructure business, reported Financial Express.
Indonesia-based bituminous coal mine operator PT Golden Energy Mines is focused on the exploration, mining and marketing of thermal coal sourced from Indonesian coal mining concession.
The firm, through its subsidiary companies, owns and operates five coal mining concessions.
These concessions, which cover an area of 66,000ha, are located in South and Central Kalimantan, Jambi, and South and West Sumatra.
As part of the agreement, GCRPL will receive a deferred consideration, which will be based on mutually agreed milestones.
GMR Group chairman Grandhi Kiran Kumar said: “Coming on the back of demerger and our 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 our green energy initiatives.
“This divestment reiterates GMR Group’s strategy of focusing on its core infrastructure business and exiting non-core businesses.”
The deal is subject to customary approvals.