Adani Ports and Special Economic Zone Ltd (APSEZ) has announced the sale of its Myanmar Port for a total of USD 30 million. The sale, which was initially announced in May 2022, included certain Condition Precedents (CPs) such as the completion of the project and approvals for the smooth conduct of business by the buyer.
However, due to continuous delays in the approval process and challenges in meeting certain CPs, APSEZ obtained an independent valuation on an “as is where is” basis, which led to a renegotiation of the sale consideration.
The buyer is expected to pay the full amount to APSEZ within three business days after completing all necessary compliance requirements. Once APSEZ receives the total transaction value, it will transfer equity to the buyer, concluding its exit from the Myanmar Port.
APSEZ’s CEO and whole-time director Karan Adani stated that this sale is in line with the guidance provided by the APSEZ Board, based on the recommendations made by the risk committee in October 2021.
The Myanmar Port sale is part of APSEZ’s strategy to streamline its business and focus on high-growth areas. The company has been expanding rapidly in recent years, with a significant presence in India’s port sector and plans to enter other markets in Southeast Asia. The sale of the Myanmar Port is expected to help APSEZ allocate more resources to its core business activities, boosting its growth prospects in the long run.
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