Built to inform

Sign up for the daily newsletters

No, Thank you

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

Oman's Galfar has offloaded its India assets [representational image].
© Arabian Business
Oman's Galfar has offloaded its India assets [representational image].

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.

Most popular

Awards

CW Oman Awards 2019: Countdown begins for gala event in Muscat
The winners and highly commended entries of the eighth CW Oman Awards will be named

Conferences

Leaders Kuwait 2018: New Kuwait 2035 needs smart city-led contracts
Localisation and contract modernisation are essential for Kuwait's diversification strategy
Construction Week's Leaders Kuwait 2018 summit opens
Speakers from Kuwait's Supreme Council for Planning and Development and CSCEC ME are at today's

Latest Issue

Construction Week - Issue 734
Mar 21, 2019