GMR Power and Urban Infra (GPUIL) said on Wednesday its subsidiary GMR Coal Resources Pte (GCRPL) would sell its 30% stake in PT Golden Energy Mines Tbk to PT Radhika Jananta Raya for a total consideration of $420 million.

PT Golden Energy Mines Tbk is an Indonesia-based bituminous coal mine operator. It owns and operates five coal mining concessions covering 66,000 hectares. The company was listed on the Indonesian stock exchange in 2011.
PT Radhika Jananta Raya, a PT ABM Investama TBK subsidiary, provides mining solutions across the mining value chain. GCRPL has signed a definitive agreement to sell the stake with the Indonesian company.

“At closing, GCRPL will receive total consideration of $420 million. In addition, the company will receive deferred consideration based on mutually agreed milestones. The transaction is subject to approval by applicable customs,” GMR Group said in a statement.

The sale is in line with the Group’s focus on core infrastructure business and exiting non-core businesses. “Coming off the back of the demerger and our strategy to deleverage the balance sheet, this investment will stimulate the non-airport business by reducing leverage and provide a platform to scale up our green energy initiatives,” said Kiran Kumar, Corporate Chairman of the GMR group.