Adani Ports and Special Economic Zone Ltd said it has completed the sale of its Myanmar port Coastal International Terminals Pte Limited for $30 million.
In May 2022, APSEZ signed a Share Purchase Agreement SPA for the sale of its Myanmar port, following a military coup in Myanmar and a 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 completion.
The buyer conducts business.
However, the deal was delayed due to difficulties in meeting certain conditions, such as completion of the project.
Despite the ongoing delays in the approval process and challenges in meeting certain CPs, APSEZ has obtained an independent valuation on as is where is basis, in addition to the ongoing delays in the approval process and challenges in meeting certain CPs. The Adani firm said in a filing today that the buyer and seller have renegotiated the sale consideration to$30 million. The buyer will pay the seller within 3 business days on completion of all necessary compliance by the seller. Upon receiving the total transaction value, APSEZ shall transfer the equity to the buyer, and its exit will remain terminated.
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 hoped 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 yet clear where the buyer is based.
The company invested $127 million in the construction, including a $90 million upfront payment to lease the land.
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. APSEZ's scrip on BSE was up 0.8% to Rs 675.25 at 13:00 local time, according to the latest data.