As part of this transaction, GMR has signed an off-take deal with GEMS, which entitles it to buy coal over the next 25 years.
According to GMR, the annual off-take quantity will steadily increase to ten million tonnes over the coming years.
The equity stake acquisition will be funded through a combination of debt and internal accruals, made through an offshore special purpose vehicle domiciled in Singapore.
GMR will pay cash consideration of $450-$550m for the transaction, which is expected to close by the end of this year.
