Galfar Engineering and Contracting SAOG (Galfar), a publicly traded Omani firm, has announced that it will sell all its investment in India for a total consideration of RO 17.2 million.
To this end, Galfar has signed a preliminary agreement with PMA International LLC for the sale of all its investment in India, the Galfar Engineering and Contracting (India) Pvt and five special purpose vehicles for road projects.
In a filing to the Muscat Securities Market yesterday. Galfar said that the buyer has agreed to pay RO 1.72 million, representing 10 per cent of the sale price, upon signing the final sale and purchase agreement. T
he remaining amount will be paid in four equal half yearly instalments over a period of 24 months with interest at a rate of 5 per cent per annum along with the half yearly instalment which will be secured by guarantees, pledges and financial instruments.
Galfar added that the sale price of RO 17.2 million is against the total net book value of investment of RO 15.71 million, thereby yielding a positive impact of around RO 1.5 million.
PMA International is a multi-sectoral investment arm and a conglomerate with global expertise in infrastructure, hospitality, and manufacturing business insight. It is engaged in different sectors spanning construction, manufacturing, hospitality, education, jewellery and real estate development in Oman, UAE, Qatar, Kuwait, Maldives, Sri Lanka and India.
PMA International through its investment has been a strong supporter and part of Oman’s long-term economic road map, ‘Vision 2020’ diversifying away from hydrocarbons and building its non-oil sector, the company stated on its website.