Ahmedabad (Gujarat) [India], May 4 : Ad Ports and Special Economic Zone Ltd (APSEZ), the largest integrated transport utility in India and a part of the diversified Ad Group, on Thursday announced that it concluded the Myanmar Port sale for a total consideration of USD 30 million.
In May 2022, APSEZ announced the signing of a share purchase agreement (SPA) for the sale of its Myanmar Port. The SPA had certain condition precedents (CPs), including completion of the project and relevant approvals for the smooth conduct of business by the buyer.
In a contract, a condition precedent is an event that must occur before the parties are obligated to perform.
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 USD 30 million.
According to the statement from APSEZ, the buyer will pay the said amount to the seller within three business days on completing all the necessary compliance by the seller. On receipt of the total transaction value, APSEZ shall transfer the equity to the buyer and its exit will stand concluded, the statement added.
Karan Ad, CEO and Whole-time Director, APSEZ, stated "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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