GMR Group to sell its 30% ownership in PT GEMS of Indonesia for $420 million

1 Sept 2022 , 10:02 AM

According to a regulatory filing, infrastructure group GMR Group will sell its 30% ownership in Indonesian bituminous coal mining company PT Golden Energy Mines (PT GEMS) for USD 420 million (about Rs3,360 crore).

By lowering leverage, the disposal will boost GMR's non-airport operations and provide a base for the expansion of its sustainable energy activities. Following a competitive bidding process, GMR Coal Resources Pte Ltd (GCRPL), a step-down subsidiary of GMR Power and Urban Infra Ltd (GPUIL), has signed agreements to sell the 30% stake it currently holds in PT GEMS to PT Radhika Jananta Raya, a division of PT ABM Investama Tbk (ABM), the filing stated.

GPUIL stated in a filing to BSE that GCRPL will get a gross payment of USD 420 million upon close and that it will also receive a deferred contribution depending on mutually agreed upon milestones. The deal is subject to any necessary customary approvals. The GMR Group's policy of concentrating on its core infrastructure sector and leaving non-core companies is reiterated by this divestiture, according to Grandhi Kiran Kumar, corporate chairman of the GMR Group.

The integrated energy firm for strategic investments PT ABM Investama Tbk is established in Indonesia and focuses on offering integrated solutions for the whole mining value chain.

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