Adani Ports and Special Economic Zone Ltd (APSEZ) has announced the completion of the sale of its Myanmar port, Coastal International Terminals Pte Limited, for $30 million. The sale was initially announced in May 2022, following a military coup in Myanmar and subsequent crackdown on mass protests. The sale was delayed due to challenges in meeting certain conditions, including the completion of the project and relevant approvals for smooth business conduct by the buyer. APSEZ obtained an independent valuation on an “as is where is” basis, leading to the renegotiation of the sale consideration.
The buyer will pay the amount within three business days on completing all necessary compliance, and on receipt of the total transaction value, APSEZ will transfer the equity to the buyer. The company had initially aimed to complete the exit between March and June 2022, but the delays led to the renegotiation of the sale price. Inputs from key minority shareholders were a key driver in the company’s decision to exit the project, with Adani Ports reiterating that it would not engage with a sanctioned entity.
The decision to exit the Myanmar port project is in line with the guidance provided by the APSEZ Board, based on the recommendations made by the Risk Committee in October 2021. The company had invested $127 million in the project, including a $90 million upfront payment to lease land. The sale of the Myanmar port comes amid increasing scrutiny of the Adani Group, which has faced criticism from environmental groups and human rights advocates.
At 1400 hours on Thursday, APSEZ’s scrip on BSE was trading 0.8% higher at Rs 675.25. It is not immediately clear where the buyer, Solar Energy Ltd, is based. Adani Ports has reiterated that it will not engage with a sanctioned entity, and the decision to exit the project was driven by the inputs from key minority shareholders. The completion of the sale marks the end of Adani Ports’ involvement in the Myanmar port project, which had faced challenges due to the political situation in the country.