Adani Ports completes Myanmar port sale for $30 mn

Adani Ports and Special Economic Zone Ltd said on Thursday that it has completed the sale of its Myanmar port Coastal International Terminals Pte Limited for $30 million.

In May 2022, APSEZ announced signing of a Share Purchase Agreement (SPA) for the sale of its Myanmar port after a military coup in Myanmar and an ensuing crackdown on mass protests drew international ire and US sanctions. The SPA had certain Condition Precedents (CPs), including completion of the project and relevant approvals for smooth
conduct of business by the buyer.

The deal was, however, delayed due to challenges in meeting certain conditions including completion of the project.

"Given the continuous delay in the approval process and challenges in meeting certain CPs, APSEZ has obtained an independent valuation on “as is where is” basis. Thereby the buyer and seller have renegotiated the sale consideration to $30 million," said the Adani firm in a stock exchange filing. The buyer will pay the said amount to the seller within 3 business days on completing all the necessary compliance by the seller. On receipt of the total transaction value, APSEZ shall transfer the equity to the buyer and its exit will stand concluded.

Inputs from key minority shareholders were a key driver in the company's decision to exit the project, Adani Ports previously said, reiterating it would not engage with a sanctioned entity.

Adani Ports had originally aimed to complete the exit between March and June 2022, but the delays led to the company renegotiating the sale price with the buyer, Solar Energy Ltd, to $30 million, the company said in a regulatory filing.

It is not immediately clear where the buyer is based.

Filings from May 2021 showed that the company invested $127 million in the project, including a $90 million upfront payment to lease land.

Karan Adani, CEO and Whole-time Director, APSEZ said: “This exit is in line with the guidance provided by the APSEZ Board based on the recommendations made by the Risk Committee in OCtober 2021.”

At 1400 hours on Thursday, APSEZ's scrip on BSE was trading 0.8% higher at Rs 675.25.

With inputs from Reuters

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