GMR Coal Resources Pte Ltd ("GCRPL"), a stepdown subsidiary of GMR Power and Urban Infra Limited (GPUIL), has entered into definitive agreements to divest the 30% equity stake it holds in PT Golden Energy Mines Tbk ("PT GEMS") to PT Radhika Jananta Raya ("Purchaser") a subsidiary of PT ABM Investama Tbk ("ABM"), following a competitive bidding process.
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.
Commenting on the divestment, Mr. Grandhi Kiran Kumar, Corporate Chairman, GMR Group, said "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."