Adani Ports and Special Economic Zone Ltd (APSEZ) announced that it has completed the sale of its Myanmar port, Coastal International Terminals Pte Limited, for $30 million. The decision to exit the project was made based on recommendations by the Risk Committee in October 2021. The sale was initially announced in May 2022, following a military coup in Myanmar and subsequent crackdown on mass protests that drew international condemnation and US sanctions.
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The Share Purchase Agreement (SPA) had certain Condition Precedents (CPs), including completion of the project and relevant approvals for smooth conduct of business by the buyer. However, the deal was delayed due to challenges in meeting certain conditions including completion of the project. APSEZ obtained an independent valuation on an “as is where is” basis, leading to a renegotiation of the sale consideration to $30 million.
APSEZ had originally aimed to complete the exit between March and June 2022, but the delays led to a renegotiation of the sale price with the buyer, Solar Energy Ltd. 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.
Filings from May 2021 showed that APSEZ invested $127 million in the project, including a $90 million upfront payment to lease land. 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.
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