GMR Energy to buy 30% in Indonesian firm for $550 mn
GMR Infrastructure on Friday said one of its units, GMR Energy, will acquire a 30% stake in Indonesian firm PT Golden Energy Mines Tbk for $550 million in cash, a move that will enhance its coal asset portfolio.business Updated: Aug 12, 2011 22:46 IST
GMR Infrastructure on Friday said one of its units, GMR Energy, will acquire a 30% stake in Indonesian firm PT Golden Energy Mines Tbk for $550 million in cash, a move that will enhance its coal asset portfolio.
The transaction will be funded through a combination of debt and internal accruals, GMR Infrastructure said.
GMR has also signed a coal offtake agreement with the Indonesian firm, which entitles it to lift coal for 25 years, starting January 1, 2012, with the annual offtake quantity steadily increasing to 10 million tonnes over the coming years.
The acquisition will be made through an offshore special purpose vehicle of GMR Energy domiciled in Singapore and is expected to close this year.
“The acquisition of a significant stake by GMR Energy in PT Golden Energy Mines is a key milestone in the growth of GMR's energy business. It will provide fuel security for our power plants under construction and also support further capacity addition and trading,” said B V N Rao, business chairman, GMR Energy.
The alliance will significantly enhance the fuel security of the power plants under construction and development by GMR Energy and also provide a coal portfolio for trading activity.
Shares of GMR Infrastructure climbed by 3.5% to touch an intra-day high of R30.9 on the BSE.