GMR Group to divest 30% stake in PT GEMS for $420 million

Infrastructure conglomerate GMR Group will divest 30 per cent stake in Indonesia-based bituminous coal mining firm PT Golden Energy Mines (PT GEMS) for USD 420 million (around Rs 3,360 crore), according to a regulatory filing.

The divestment will give thrust to GMR's non-airport business through reduction of leverage and give a platform for the growth of its clean energy initiatives.

GMR Coal Resources Pte Ltd (GCRPL), a step-down subsidiary of GMR Power and Urban Infra Ltd (GPUIL), has signed definitive pacts to offload the 30 per cent stake it holds in PT GEMS to PT Radhika Jananta Raya, an arm of PT ABM Investama Tbk (ABM), following a competitive bidding process, the filing said. GPUIL -- a subsidiary of GMR Enterprises (GEPL) -- holds expertise in the energy, urban infrastructure and transportation sectors.

GCRPL will receive a gross consideration of USD 420 million on closure, GPUIL said in a filing to BSE, adding it will also get a deferred consideration based on mutually agreed milestones. The transaction is subject to customary approvals as applicable.

"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 ABM Investama Tbk is an Indonesia-based integrated energy company for strategic investment, engaged in providing integrated solutions across the mining value chain.