GMR Infra to list coal mine firm on Singapore exchange
GMR Infrastructure's plan to list its Indonesian coal mine company on the Singapore Stock Exchange through a reverse takeover deal will now hinge on concluding a year-old agreement with Singapore firm United Fibre System (UFS). The companies have agreed to extending the time period for finalising the terms of their agreement until July 12.
The agreement had lapsed two months ago with the parties unable to continue on the original terms, given the financial difficulties UFS was facing over the past year which were largely due to a loss-making construction business subsidiary that has now been placed under judicial management.
GMR, which is building two coal-based power plants in India, had acquired a 30% stake in Indonesian coal company PT Golden Energy Mines Tbk from the Sinar Mas group in 2011 for over $450 million as part of an effort to tie-up fuel resources for its plants. With a listing in Singapore seen to offer better investor appetite for raising funds, GMR and Sinar Mas last year entered into a share purchase agreement with UFS, a firm listed on the Singapore Stock Exchange with interests in the forestry and pulp business besides construction.
The coal mine, which has estimated coal reserves of 860 million tonnes, is held by the Indonesian firm PT Dian Swastatika Sentosa Tbk (DSS) while GMR's stake is held in a Singapore-based entity called GMR Coal Resources Pte (GCRPL). The share swap agreement was that UFS would purchase shares in DSS in exchange for its own shares to facilitate a reverse takeover. GCRPL and DSS were to get 27% and 67.4% stake respectively in UFS at the end of the transaction.
- Stop Aadhaar data use to probe crime: UIDAI to SC
- Congress will win at least 20 seats in the state: Siddaramaiah
- Have done nothing wrong, need not fear anyone: Geetha Shivrajkumar
- ‘We’ll make progress in south India, open account in Kerala’
- Scolded by teachers for playing Holi, two girls commit suicide
- On Holi, 42-year-old stabs wife