Adani Ports and Special Economic Zone Ltd. announced the completion of the sale of its Myanmar port for $30 million. APSEZ announced the signing of a Share Purchase Agreement (SPA) for the sale of its Myanmar port in May 2022. The SPA included several condition precedents (CPs), such as project completion and required approvals, for the buyer to conduct business smoothly.
Given the ongoing clearance process delays and problems in achieving some CPs, APSEZ has received an independent valuation on an “as is, where is” basis. As a result, the buyer and seller renegotiated the sale price to $30 million.
The buyer shall pay the stated price to the seller within three business days of the seller fulfilling all necessary compliance. When APSEZ receives the total transaction value, it will transfer the equity to the buyer, and its exit will be completed.
The project sparked controversy after it was revealed that APSEZ CEO Karan Adani visited Senior General Min Aung Hlaing, the Myanmar army head who conducted a coup against the elected government, in July 2019.
In August 2021, APSEZ stated that their investment in a port in Myanmar did not violate any sanctions rules published by the US Department of Treasury’s Office of Foreign Assets Control (OFAC). APSEZ, India’s largest port developer, is part of the globally diverse Adani Group.
APSEZ CEO and Whole-Time Director Karan Adani stated, “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.”