Taking farther its asset-light -asset-right strategic, GMR Infrastructure is understood to be keenly looking to monetise its coal mining assets in Indonesia, which it obtained for close to $600 million.
The publicly held infrastructure developer, which has presence in power projects, air-ports, highways and special economic zones, has been on an active asset shedding mode all through the last 18 months & has exited nearly all its businesses overseas. All through the last year and half, GMR exited power projects, air-ports in various global locations & monetised handsomely to infuse equity into its other India focused projects.
The 2 coal mines in Indonesia, which GMR acquired during 2008 & 2011 for close to $600 million, may be under the block as the company looks strongly to carry its debts stages to a manageable level. GMR Infrastructure that they will continue to work towards creating and enhancing value of all their assets. “We would be concentrating on increasing value of the coal resources. Though, if we get an attractive offer, we would not be adverse from divestment as well,” the representative included.
GMR during 2008 had obtained PT Barasentosa Lestari, Indonesia for close to $100 million & which coal sources of 700 mt. Afterward during 2011, GMR went further & acquired a 30 % share in PT Golden Energy Mines, a Sinar Mas Group company in Indonesia, for $500 million, which has coal resources of 1.9 billion tonnes. GMR has been working parallely on taking this resource on to the Singapore Stock swap through a reverse record procedure, the process of which has been late as the Singapore Stock swap has asked for a sequence of clarifications.
GMR stake divestments during 2013
December 2013: Divests 40% at airport in Turkey for Rs 1,910 crore
September 2013: Divests 74% in Tamil Nadu highway project for Rs 222 crore
March 2013: Exits 70% at Singapore power project for Rs 1,376 crore
March 2013: Exits coal mine assets in South Africa with marginal gain
February 2013: Divests 74% in highway project in Andhra Pradesh for Rs 146 crore
GMR Infrastructure is currently considered down with a net debts of close to Rs 40,000 cr with a make use of nearly 3.5 periods, due to which the interest expenses taken up by a good 45 % and which led to a important net loss for the third quarter of Fy14.
This move by GMR Infrastructure, comes at a time when all through the last calendar year, they divested 3 assets & have finalized specified contracts for divestment of couple of assets. “With this we would be achieving a decrease of around Rs 6,000 cr in our combined debts. Though, there would be progressive draw-down of loan against the approved boundaries in tasks under construction. Hence, we should look into the business debts, rather than overall debts or project debt. Currently, we have around Rs 4,500 crore debts in GMR Infrastructure and we plan to decrease the same by 25 % by next quarter,” the spokesperson included.
The other aspect which GMR would have to address with on an immediate basis will be the interest outflow which is taking a severe toll on the company, even as it is seated on idling gas-fueled power assets which has diminishing fuel supplies to produce power. “Based on the present estimates, the interest costs for the next financial should be around Rs 3,300 cr. However, the figure may differ depending on the completion the projects under construction & the prevailing interest,” the spokesperson mentioned. All through last financial, GMR reported an EBIDTA of close to Rs 2,500 cr.
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