PT Golden Energy Mines Tbk (PT GEMS), a step-down subsidiary of GMR Power and Urban Infra Limited, stated on Wednesday that it has entered into definitive agreements to sell PT Radhika Jananta Raya a 30% ownership investment in exchange for USD 420 million and deferred consideration.
In Indonesia, five coal mining concession areas are owned and run by PT GEMS, a company that operates bituminous coal mines there. A subsidiary of Indonesia-based integrated energy firm for strategic investment PT ABM Investama Tbk (ABM), PT Radhika Jananta Raya offers integrated mining solutions for the whole mining value chain. “On closing, GCRPL will receive a gross consideration of USD 420 million.
Further, GCRPL will also receive a deferred consideration based on mutually agreed milestones. The transaction is subject to customary approvals as applicable,” the press release said. Grandhi Kiran Kumar, corporate chairman of the GMR Group, commented on the divestment, stating that coming off of the demerger and the group’s strategy to deleverage balance-sheet, this divestment would provide impetus to the non-airport business by lowering leverage and provide a platform for expanding the green energy initiatives.
He added that the divestment is a continuation of GMR Group’s strategy of concentrating on its core infrastructure business and leaving non-core businesses.
