Oman contractor Galfar offloads Indian assets in $45m sale
Muscat-listed Galfar has sold all of its investments in India, including a local unit and machinery assets, to PMA
Galfar Engineering & Contracting has agreed to sell all of its Indian assets to investment house PMA International in a deal worth $44.7m (OMR17.2m).
The Omani contractor will divest its India-based construction company, Galfar Engineering & Contracting India, and five vehicles used to build roads.
Plans to offload its India-based assets came to light in October 2017, when the company notified Muscat Securities Market of its intention to explore potential divestment opportunities.
PMA International will pay 10% of the fee upfront and transfer the outstanding 90% in four instalments over the next two years. Galfar expects to make $3.9m (OMR1.5m) in profit from the deal.
The acquisition still requires regulatory approval and a final vote by Galfar’s shareholders, which will be held if authorities okay the deal.
Progress on the divestment maintains Galfar's strong start to the year, following a trio of multimillion-dollar contract wins.
In January, the business won a $77.8m (OMR26.9m) government contract to set up a water network in Al Hamra and Bilad Sait in the north-east. More recently, India-headquartered Punj Lloyd handed Galfar a $1.9m (OMR753,000) deal to install equipment for the Fahud to Sohar natural gas pipeline.
Galfar also secured a $7.4m (OMR2.8m) contract to set up heating, ventilation, and air-conditioning for Oman Telecommunications Company.