The sale of Adani Ports and Special Economic Zone Ltd Myanmar port to Coastal International Terminals Pte Limited for $30 million was finalised, the company announced on Thursday.

After a military coup in Myanmar and the subsequent crackdown on large-scale protests drew criticism from around the world and US sanctions, APSEZ announced in May 2022 that it had signed a Share Purchase Agreement (SPA) for the sale of its Myanmar port. The project's completion and the necessary permissions for the buyer to conduct business smoothly were among the Condition Precedents (CPs) of the SPA.

However, difficulties in fulfilling certain requirements, such as the project's completion, caused the deal to be delayed.

"Given the continuous delay in the approval process and challenges in meeting certain CPs, 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," said the Adani firm in a stock exchange filing.

On completion of all required compliance by the seller, the buyer will pay the stated price to the seller within 3 business days. After receiving the full transaction value, APSEZ will transfer the buyer's equity and declare its exit to be complete.

Adani Ports earlier stated that input from significant minority shareholders had a significant role in the company's decision to abandon the project and reiterated that it would not cooperate with a sanctioned organisation.

Due to the delays, Adani Ports had to renegotiate the sale price with the buyer, Solar Energy Ltd, to $30 million from its original goal of finishing the exit between March and June 2022, the company stated in a regulatory filing.

The buyer's location is not easily identifiable.

According to filings from May 2021, the business put $127 million into the project, including a $90 million down payment for the land lease.

Karan Adani, CEO and Whole-time Director, APSEZ said: “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.”

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