GMR Coal Resources Pte (GCRPL) has entered into definitive agreements to divest a 30 per cent equity stake in PT Golden Energy Mines Tbk (PT GEMS) to PT Radhika Jananta Raya through bidding for ₹3,300 crore ($420 million).
GMR Coal Resources Pte, which owns a stake in the Indonesia-based bituminous coal mine operator, is a step-down subsidiary of GMR Power & Urban Infra (GPUIL), while PT Radhika Jananta Raya is an arm of a subsidiary of PT ABM Investama Tbk.
In closing, GCRPL will receive a gross consideration of $420 million. Further, GCRPL will receive a deferred consideration based on mutually agreed milestones. The transaction is subject to customary approvals as applicable, GPUIL said in a statement.
“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,” GMR Group Corporate Chairman Grandhi Kiran Kumar said.
PT GEMS holds 18 subsidiary companies owning and operating five coal mining concession areas in Indonesia, covering an aggregate area of 66,000 hectares in South and Central Kalimantan, Jambi, and South and West Sumatra.
PT GEMS has been listed on the Indonesia Stock Exchange and its flagship mine, PT Borneo Indobara, located in South Kalimantan, still has 14 years remaining on its concession and around 1 billion tonnes of coal reserves.