Adani Ports And Special Economic Zone Completes Myanmar Port Sale Deal For $30 Million

In May 2022, APSEZ announced signing of a Share Purchase Agreement (SPA) for the sale of its Myanmar Port

In August, 2021, APSEZ had said its investment in a port in Myanmar was not in violation of any sanction guidelines issued by the Office of Foreign Assets Control of the US Department of Treasury. ( Image Source :APSEZ )

Adani Ports and Special Economic Zone (APSEZ) Ltd said on Thursday that it has completed the sale of its Myanmar port Coastal International Terminals Pte Limited for $30 million. According to a release by APSEZ, in May 2022, the company announced signing of a Share Purchase Agreement (SPA) for the sale of its Myanmar Port. The SPA had certain Condition Precedents (CPs), including completion of the project and relevant approvals for smooth conduct of business by the buyer.

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.

According to the statement, 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, it said

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.”

The project had run into controversy after it was reported that APSEZ chief executive Karan Adani had in July 2019 met Senior General Min Aung Hlaing, the Myanmar's army chief who led a coup against the elected government.

In August, 2021, APSEZ had said its investment in a port in Myanmar was not in violation of any sanction guidelines issued by the Office of Foreign Assets Control (OFAC) of the US Department of Treasury.

APSEZ, the largest port developer in India, is part of the globally diversified Adani Group. It has evolved from a port company to an Integrated Transport Utility providing an end-to-end solution from its port gate to customer gate.