CNA – India’s Adani Ports and Special Economic Zone said yesterday it has completed the sale of its port in sanction-hit Myanmar for USD30 million, significantly lower than its investment in the project.
The Adani Group company announced the sale in May 2022 after a military coup in Myanmar and an ensuing crackdown on mass protests drew international ire and United States (US) sanctions.
The deal was, however, delayed due to challenges in meeting certain conditions including completion of the project.
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 aimed 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, to USD30 million, the company said in a regulatory filing.
It is not immediately clear where the buyer is based.
Filings from May 2021 showed that the company invested USD127 million in the project, including a USD90 million upfront payment to lease land.
However, a source familiar with the matter said Adani Ports had invested USD195 million in the greenfield project, which had not become operational yet.
Adani Ports did not immediately respond to request for comment.
Shares of Adani Ports rose as much as 1.2 per cent after the announcement.