The Adani Group, founded by Gautam Adani in 1988, is an Indian conglomerate interested in various sectors such as ports, real estate, energy, and more. It has a presence in over 50 countries. Recently, this company concluded the sale of its ports in Myanmar at a discounted price of $30 million.
The Adani Group announced in May last year, after a military coup in Mayanman, that they had signed an agreement to sell their assets at a price that would enable them to recover their entire investment in the ports. According to sources, they had invested around US $195 million in this greenfield project, which has yet to become operational.
READ ALSO – Discovery of Biggest Deposit of Lithium in J&K Will Be a Historic Milestone in Atma-Nirbhar Bharat
Why does Adani sell Myanmar ports at a discounted price?
Adani Ports and Special Economic Zone Limited (APSEZ) sold Myanmar’s port to the overseas firm Solar Energy Ltd. for a discounted price of $30 million due to Myanmar’s current economic and political situation. Adani Group decided to exit the project due to the uncertainties surrounding the country’s future.
They also mentioned the reason for delaying the deal in their regulatory filing. They had originally aimed to complete the exit between March and June 2022. However, this deal was delayed as Adani needed help to meet certain conditions, like the completion of the project. The delays caused the company to renegotiate the sale price with the buyer. They also announced last year that they could not recover their entire investment by selling the port at a discounted price.
Result of selling the Myanmar port
Selling the Myanmar port is a big loss for the Adani company. However, the funds generated from this deal will supply funds to pay international bonds maturing in the near term. Also, the Adani Ports share price looks positive on the chart pattern but is not going up beyond ₹ 700 levels. However, it is estimated that the stock of Adani Group may go up to ₹ 780 levels soon.
Summary
Adani Ports and Special Economic Zone Ltd. sold its Myanmar port for a discounted price of $30 million due to mass protests that drew international ire and US sanctions. This deal resulted in a big financial loss for Adani Group, but it also caused the shares of Adani Ports to rise by 1.2% after the announcement. The current share price of Adani Ports is between ₹ 670 to ₹ 700 a piece.
