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India's Adani Ports sells Myanmar port for a discounted $30 million

FILE PHOTO: The logo of the Adani group is seen on the facade of one of its buildings on the outskirts of Ahmedabad

BENGALURU (Reuters) - India's Adani Ports and Special Economic Zone Ltd said on Thursday that it has completed the sale of its port in sanction-hit Myanmar for $30 million, significantly lower than its investment in the project.

The Adani Group company announced the sale in May 2022 after a military coup in Myanmar and an ensuing crackdown on mass protests drew international ire and U.S. sanctions. The deal was, however, delayed due to challenges in meeting certain conditions including completion of the project.

Inputs from key minority shareholders were a key driver in the company's decision to exit the project, Adani Ports previously said, reiterating it would not engage with a sanctioned entity.

Adani Ports had originally aimed to complete the exit between March and June 2022, but the delays led to the company renegotiating the sale price with the buyer, Solar Energy Ltd, to $30 million, the company said in a regulatory filing.

It is not immediately clear where the buyer is based.

Filings from May 2021 showed that the company invested $127 million in the project, including a $90 million upfront payment to lease land.

However, a source familiar with the matter said Adani Ports had invested $195 million in the greenfield project, which had not become operational yet.

Adani Ports did not immediately respond to Reuters' request for comment.

Shares of Adani Ports rose as much as 1.2% after the announcement.

(This story has been corrected to say that $30 million is the sale price, not discount price, in the headline)

(Reporting by Nandan Mandayam and Chris Thomas in Bengaluru; Editing by Savio D'Souza and Sonia Cheema)