APSEZ has announced the successful completion of the sale of its Myanmar port, Coastal International Terminals Pte Limited, for $30 million. The Risk Committee had advised that the project be terminated in October 2021. The transaction was initially reported in May 2022, following Myanmar’s military coup and ensuing crackdown on protestors, which attracted international condemnation and led to US sanctions.
Sale Of Myanmar Port – Share Purchase Agreement
The Share Purchase Agreement (SPA) contained specified Condition Precedents (CPs) that had to be completed in order for the buyer to do business efficiently, such as project completion and receiving essential permissions. However, the agreement was delayed due to difficulty in meeting key conditions, including the completion of the project. The sale consideration was renegotiated to $30 million when APSEZ received an independent valuation based on the existing stage of the project.
The completion of APSEZ’s exit, which was originally scheduled to take place between March and June 2022, was postponed due to certain conditions not being completed. This prompted the buyer, Solar Energy Ltd., to renegotiate the sale price, resulting in the sale of Coastal International Terminals Pte Limited for $30 million. The buyer will pay the agreed sum within three business days after the seller has completed all necessary compliance. When APSEZ gets the full transaction amount, the equity will be transferred to the buyer and the exit will be completed.
According to documents submitted in May 2021, APSEZ had committed $127 million in the Myanmar port project, including a $90 million down payment for leasing the site. Adani Ports had indicated that the decision to quit the project was influenced by input from minority shareholders and underlined that it would not cooperate with any sanctioned entity.
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