Homeland Mining and Energy SA Proprietary Limited (HMESA), part of Homeland Energy Group Ltd, in which GMR Energy has a majority stake, has signed up to divest 50 per cent stake in Tshedza Mining Resource.

Tshedza Mining Resource holds the licence for development of Eloff mines. HMESA has also entered into an agreement for the sale of its entire shareholding of Ferret Coal (Kendal) (Pty) Ltd. This is subject to HEG shareholders approval. HEG is a coal producer in South Africa and listed in Canada.

The Kendal mine is an operating mine and sells coal in domestic market while the Eloff mine is under development stage.

The details of the transactions have not been made public. The consummation of transaction is subject to receipt of statutory approvals in South Africa, according to GMR.

In 2009, GMR Energy, a subsidiary of GMR Infrastructure, had acquired 33.5 per cent stake in the Canadian-listed company HEG. This was through a share exchange programme.

GMR Infra had initiated a process to exit part stake in HEG last year. There were reports that this could fetch about $ 100 million. GMR had acquired stake in coal assets to secure fuel supplies for its projects in India.

The diversified infrastructure company has adopted a strategy to divest some of its matured projects and train attention on ongoing projects. As a part of this strategy, it has divested stake in a road project in Andhra Pradesh and a majority stake in a power project in Singapore.

This is the second major divestment by GMR in a global location. Prior to this, GMR Energy arm sold its stake in a power plant in Singapore.

rishikumar.vundi@thehindu.co.in

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