Adani Ports and Special Economic Zone (APSEZ) said in an regulatory filing on Thursday that it has completed the sale of its Myanmar port Coastal International Terminals Pte for USD 30 million.
In May 2022, APSEZ declared that it had signed a Share Purchase Agreement (SPA) for the sale of its Myanmar port. This decision was made in the aftermath of a military coup in Myanmar and the ensuing crackdown on mass protests that drew international condemnation and led to US sanctions.
However, the completion of the project and relevant approvals for the smooth conduct of business by the buyer were among the Condition Precedents (CPs) outlined in the SPA.
The deal has faced setbacks due to difficulties in meeting certain conditions, such as finishing the project, resulting in delays.
“Growth in cargo volumes across most of our ports reflects that our strategy of improving operational efficiency is delivering results and this will continue to boost the ROCE of port assets” said Karan Adani, CEO and Whole Time Director, APSEZ.
He added, “I am also pleased to announce that Dhamra LNG Terminal berthed its first ship and the natural gas started flowing in the pipeline network connected to the terminal, well in line with our guidance of achieving the LNG terminal commissioning during Q1 FY24.”
Adani Ports stated that feedback from its minority shareholders played a significant role in its decision to withdraw from the project, as the company had committed to not engage with any sanctioned entities.