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

Oman's Galfar has sold all its India assets.
Oman's Galfar has sold all its India assets.

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.

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