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Adani Ports and Special Economic Zone Ltd (APSEZ) announced on Thursday that it has finalized the sale of the Myanmar port for a total of US$30 million.
In May 2022, APSEZ announced the signing of a Share Purchase Agreement (SPA) for the sale of Port Myanmar. The SPA has had some conditional precedents (CPs), including project completion and related approvals for a smooth workflow by the purchaser.
APSEZ said in a statement that due to ongoing delays in the approval process and challenges in meeting certain CPs, APSEZ obtained an independent evaluation on an “as is” basis.
It added that the buyer and seller had renegotiated the sale price to $30 million.
According to the statement, the buyer will pay the said amount to the seller within 3 working days upon completion of all necessary compliance by the seller.
Upon receipt of the total transaction value, it said, APSEZ will transfer the equity to the buyer and its exit will still expire.
APSEZ CEO and full-time director Karan Adani said, “This exit is in line with the guidance provided by the APSEZ Board of Directors based on the recommendations made by the Risk Committee in October 2021.
The project was the subject of controversy after it was reported that in July 2019, Asia Pacific Chief Executive Karan Adani met with Senior General Min Aung Hlaing, the Myanmar military chief who led a coup against the elected government.
In August 2021, APSEZ said its investment in a port in Myanmar did not violate any punitive guidelines issued by the US Treasury’s Office of Foreign Assets Control (OFAC).
APSEZ, India’s largest port developer, is part of the globally diversified Adani Group.
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