Infrastrucutre major GMR Energy Ltd on Wednesday said it has decided to divest its 50 per cent equity interest in Tshedza Mining Resource (Pty) Ltd, which holds the licence for the development of Eloff mines in South Africa for an undisclosed sum.
It may be mentioned that GMR has a majority shareholding in Homeland Mining and Energy SA Proprietary Ltd (HMESA), a wholly owned subsidiary of Homeland Energy Group Ltd, a company listed in Canada.
“The purchaser of the Homeland’s interest in the Eloff mines is the company’s current BEE partner, who already holds a 50 per cent interest in the property,” GMR said in a statement.
The consummation of transaction was subject to receipt of statutory approvals in South Africa. HMESA has also entered into an agreement for the sale of its entire shareholding of Ferret Coal (Kendal) . The transaction will be subject to receipt of statutory approvals and HEG shareholders nod.
The Kendal mine is an operating mine and sells coal in domestic market while the Eloff mine is under development stage.
Recently, GMR announced its intent to sell 70 per cent stake in GMR Energy (Singapore) to FPM Power Holdings for Singapore $660 million. The proposed divestment is expected to fetch the cash-starved GMR a profit of `1,356 crore and releases capital worth `1,616 crore.
“We believe this is a sustainable long term business model for Indian infrastructure developers,” GM Rao, Chairman, GMR had said.