Adani Ports and Special Economic Zone, a subsidiary of the Adani Group in India, has finalized the sale of its Myanmar port for $30 million, which is significantly lower than its initial investment in the project. The sale was announced in May 2022 following a military coup in Myanmar and the ensuing crackdown on mass protests that led to U.S. sanctions.
Despite delays due to certain conditions, including project completion, the sale was eventually completed. Adani Ports cited input from minority shareholders as a key factor in their decision to exit the project and reiterated their policy of not engaging with sanctioned entities. Due to the delays, the company had to renegotiate the sale price with Solar Energy, the buyer, resulting in the $30 million sale price.
The location of the buyer is currently unknown. According to May 2021 filings, the Adani Group invested $127 million in the Myanmar port project, which included a $90 million upfront payment for land leasing.
However, a source familiar with the matter revealed that Adani Ports’ actual investment in the greenfield project was $195 million, which had not yet begun operations.
Adani Ports has yet to comment on the matter in response to a request from Reuters. Following the announcement of the sale, shares of Adani Ports saw an increase of up to 1.2%.
