GMR Coal to Sell Stake in Golden Energy Mines for US$420 Mln

GMR Power and Urban Infra (GPUIL) announced on Wednesday that subsidiary GMR Coal Resources Pte (GCRPL) would sell its 30 percent stake in PT Golden Energy Mines Tbk (GEMS) to PT Radhika Jananta Raya for a gross consideration of US$420 million. Golden Energy Mines, an Indonesian-based bituminous coal mine operator, owns and operates five coal mining concession areas of around ​​66,000 hectares. Meanwhile, PT Radhika Jananta Raya is a subsidiary of PT ABM Investama Tbk (ABMM), a company that provides mining solutions across the mining value chain. GCRPL has already signed definitive agreements with the Indonesian firm for the divestment. "On closing, GCRPL will receive a gross consideration of US$420 million. Further, GCPRL will also receive a deferred consideration based on mutually agreed milestones. The transaction is subject to customary approvals as applicable," GMR Group revealed in a statement, as quoted by Financial Express.

The divestment aligns with the Group's strategy to focus on its core infrastructure business. "Coming on the back of demerger and our strategy to deleverage the balance sheet, this divestment would provide impetus to the non-airport business through the reduction of leverage and provide a platform to grow our green energy initiatives," GMR Group corporate chairman Grandhi Kiran Kumar said as reported by Financial Express.