Adani Group Sells Myanmar Port for $30 Million

Padmesh Prabhune

Adani Group’s ports arm APSEZ has sold its ambitious Myanmar Port project for a sum of USD 30 million to an overseas firm Solar Energy Ltd.

Karan Adani, whole-time director and CEO, APSEZ, said in a statement, “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.”

The Company in its statement added, “Given the continuous delay in the approval process and challenges in meeting certain condition precedents, 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.”

Earlier in May 2019, APSEZ had announced its intent to set up a container terminal at Yangon, Myanmar and entered through a lease agreement with the Myanmar government, under which Adani Group had to pay $30-50 million in fees for a 54-acre land leased from MEC, out of a total planned investment of $290 million by the Adani Group. The Myanmar Port terminal was planned to have a quay length of 635 meters with a capability to handle three vessels at a time.

According to earlier filing APSEZ invested around $127 million (including $90 million for the upfront payment for land lease) in the Myanmar Port project. Subsequently, around $25 million more was invested in the planned container terminal project, which was being built by Adani Group with an aim to establish a strong South-East Asia port footprint. The group planned to do this by creating synergies with Adani’s existing container terminal operations on the east and south coast of India and the trans-shipment hub at Vizhinjam, Kerala.

-Marex Media