INDIA

GMR Energy has entered into a definitive agreement to acquire a 30 per cent stake in the Indonesian firm and will be paying a cash consideration of USD 450-550 million for the transaction, which will be funded through a combination of debt and internal accruals, GMR Infrastructure said in a regulatory filing.As part of the transaction, 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," GMR Energy Business Chairman B V N Rao said.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, the company said.Reacting to the news, shares of GMR Infrastructure climbed by 3.51 per cent to touch an intra-day high of Rs 30.90 on the Bombay Stock Exchange. They were later trading at Rs 30.40, up 1.84 per cent, at 1056 hours. [More]
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