GMR Power and Urban Infra (GPUIL) on Wednesday said its subsidiary GMR Coal Resources Pte (GCRPL) will divest the 30% equity stake it holds in PT Golden Energy Mines Tbk to PT Radhika Jananta Raya for a gross consideration of $420 million.
PT Golden Energy Mines Tbk is an Indonesian-based bituminous coal mine operator. It owns and operates five coal mining concession areas covering an area of 66,000 hectares. The company was listed on the Indonesian stock exchange in 2011.
PT Radhika Jananta Raya is a subsidiary of PT ABM Investama TBK, a company that provides mining solutions across the mining value chain. GCRPL has signed a definitive agreement with the Indonesian firm for the stake sale.
“On closing, GCRPL will receive a gross consideration of $420 million. Further, the company will also receive a deferred consideration based on mutually agreed milestones. The transaction is subject to customary approvals as applicable,” GMR Group said in a statement.
The divestment of the stake is in line with the Group’s strategy of focusing on its core infrastructure business and exiting non-core businesses.
“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,” said Grandhi Kiran Kumar, corporate chairman of GMR Group.