• Wednesday, May 29, 2024

Business

Adani Group firm concludes sale of Myanmar Port for £24m

Adani Ports and Special Economic Zone is the largest port developer in India

FILE PHOTO: Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port earlier in January 2023, in Haifa port, Israel January 31, 2023. REUTERS/Amir Cohen

By: Pramod Thomas

Adani Ports and Special Economic Zone (APSEZ) announced on Thursday (4) that it has completed the sale of its Myanmar Port for $30 million (£23.8m).

In May 2022, APSEZ had signed a Share Purchase Agreement (SPA) for the sale, which included certain Condition Precedents (CPs) such as obtaining necessary approvals and completing the project for smooth business operations by the buyer.

However, due to delays in the approval process and challenges in meeting some of the CPs, APSEZ obtained an independent valuation on an “as is where is” basis.

As a result, both parties agreed to renegotiate the sale consideration, a statement said.

According to the statement, the buyer will pay the said amount to the seller within three 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.

APSEZ chief executive officer and whole-time director Karan Adani said 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 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.

Adani group had previously said it had won the Yangon International Terminal project through a global competitive bid. The project required $290m (£230m) investment.

(PTI)

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