Oman's Galfar closes $45m sale of India assets to PMA International
Muscat-listed contracting giant sells all investments in India, including local subsidiary and special purpose vehicles
The $44.7m (OMR17.2m) sale of Galfar Engineering & Contracting’s Indian assets to investment house PMA International has closed, an 8 July filing on Muscat Securities Market revealed.
Under the deal, which Galfar agreed to in February 2019, the Omani contractor has divested its India-based construction company, Galfar Engineering & Contracting India, and five special purpose vehicles deployed for road projects.
The news follows approval from Galfar’s shareholders, a prerequisite for the deal, alongside the go-ahead from the country’s regulator.
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, as reported by Construction Week in February.
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.
Oman-based Galfar is one of the sultanate’s biggest construction companies.
It won a $77.8m (OMR26.9m) government contract in January to set up a water network in Al Hamra and Bilad Sait in the north-east, and the same month saw it secure a $7.4m (OMR2.8m) contract to set up heating, ventilation, and air-conditioning for Oman Telecommunications Company.
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's chief executive officer, Dr Hans Erlings, was ranked #44 in the 2019 Power 100, Construction Week's annual ranking of the most influential leaders in the Middle East's construction industry.