Team Blitz India
MUMBAI: Adani Group’s ports arm APSEZ, has been forced to take a $120 million hit on its balance sheet as the company has agreed to sell its ambitious Myanmar Port project for barely $30 million to an overseas firm Solar Energy Ltd in the wake of sanctions imposed by the US on Myanmar Economic Corp. Ltd (MEC), a Burmese military-controlled company.
Karan Adani, whole-time director and CEO, APSEZ, said in a statement on May 4, “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.”
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 54-acre land leased from MEC, out of a total planned investment of $290 million by Adani Group.
Two years ago, a group of Australian and other international human rights activists had criticized the Gautam Adani-led group over the Myanmar Port deal, stating that Adani Ports should be held accountable for doing business with MEC.
