Oman’s Galfar to pull out of India

Oman-based Galfar Engineering and Contracting Company has signed a preliminary agreement with PMA international to sell all its investments in India for around RO17.2mn, the company said in a disclosure at the Muscat Securities Market on Tuesday.

“Further to our previous disclosure dated October 29, 2017, we would like to inform our esteemed shareholders and investors that the company (seller) has signed a preliminary agreement with PMA international (buyer), for sale of all its investments in India. (Galfar Engineering & Contracting (India) Pvt. Ltd and Five Special Purpose vehicles for road projects),” Galfar said.

The company added, “The parties have agreed for a sale price of RO17.2 million. The buyer will pay RO1.72 million (10 per cent of the sale price) upon signing the finale sale and purchase agreement. The remaining amounts will be paid in four equal half yearly instalments over the period of 24 months with interest at a rate of 5  per cent p.a. on the balance amount along with the half-yearly instalments which will be secured by Guarantees, Pledges and Financial instruments.”

“All documentation required for execution of this transaction is under process,” the disclosure added. Galfar said this transaction is subject to sanctioning of the regulatory body in Oman and thereafter final approval of the shareholders.

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