Adani Ports to exit Myanmar Port by paying $30 million

NEW DELHI: Adani Ports and Special Economic Zone Ltd (APSEZ) will not go ahead with the proposed acquisition of the Myanmar Port and has exited from the project. The Adani group company had last May signed a share purchase agreement (SPA) for the sale of its Myanmar Port. The SPA had certain condition precedents (CPs), including completion of the project and relevant approvals for smooth conduct of business by the buyer.

“Given the continuous delay in the approval process and challenges in meeting certain CPs, APSEZ has obtained an independent valuation on ‘as is where is’ basis. Thereby the buyer and seller have renegotiated the sale consideration to $30 million. 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,” APSEZ said in a statement.

APSEZ CEO and whole time director Karan Adani said, “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 is India's largest port developer and operator with six strategically located ports and terminals on the west coast (Mundra, Dahej, Tuna and Hazira in Gujarat, Mormugao in Goa and Dighi in Maharashtra) and five ports and terminals on the east coast of India (Dhamra in Odisha, Gangavaram, and Krishnapatnam in Andhra Pradesh, and Kattupalli and Ennore in Tamilnadu). The company is also developing two trans-shipment ports at Vizhinjam, Kerala and Colombo.