Myanmar Port sold at discounted price of $30 million by Adani Ports

Adani Ports and Special Economic Zone (APSEZ), the largest private port operator in India, stated that it had agreed to sell the contentious Myanmar Port for $30 million, which is $120 million less than the value of its previous investment in the port. Karan Adani, CEO & Director, APSEZ stated that, 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 business announced the signing of a share-purchase agreement for the sale of its Myanmar Port in May 2022. The agreement included a number of condition precedents (CPs), including the project's completion and the buyer's receipt of all necessary approvals. The APSEZ has received an independent valuation on a as is, where is basis because of the ongoing delays in the approval process and difficulties in complying with some CPs. As a result, the selling consideration was renegotiated between the buyer and seller to $30 million. After the seller has completed all required compliance, the buyer will pay the specified sum to the seller within three business days, according to a statement from APSEZ. According to the company's regulatory filing, a company called Solar Energy is the buyer. There is still a lack of information. According to the statement, APSEZ will transfer the equity to the buyer once it has received the final transaction value and will then complete its exit. The port operator was embroiled in dispute over the project after a military coup in February 2021, which was announced in May 2019. After the US put sanctions on the military officials in the country responsible for the coup, there were claims that the conglomerate was in reality aiding in genocidal measures in the nation. With the ensuing military takeover in Myanmar and the ongoing US sanctions against the commercial engagement with Myanmar. According to the risk committee's suggestion, the business has chosen to sell its interest in Myanmar since February 2021. We anticipate that this transaction will be completed by the end of this fiscal year,” Adani stated in the company's October 2021 results call.