India’s Adani Ports becomes next investor to call it quits in Myanmar

Adani Ports and Special Economic Zone, India’s largest integrated ports and logistics company, said on October 27 at its fiscal second quarter presentation that it has decided against continuing building a container terminal in Myanmar amid deteriorating economic and humanitarian conditions in the country.

“The company’s risk management committee, after a review of the situation, has decided to work on a plan on exiting the company’s investment in Myanmar, including exploring any divestment opportunities,” Adani said in a statement, without giving further details.

The company is expected to fully exit from its investment in the troubled nation between March and June next year, the statement said.

Write-down of $127 million

Adani Ports said it has invested $127 million in Myanmar so far, including a $90-million upfront payment for leasing land, but noted that a write-down of this sum would not have a material impact as the project accounts for only about 1.3% of the company’s total assets.

Adani last year won the bid to build and operate Yangon International Terminal, an independent project fully-owned and developed by the Indian company.

A March report released by two rights groups cited documents purporting to show that an Adani unit would pay up to $30 million in land lease fees for the project to the Myanmar Economic Corporation, one of two military-controlled conglomerates in Myanmar under US sanctions.

Adani did not comment on the lease payments detailed in the report at the time, but later said it had a “zero-tolerance policy on sanctions.”



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Adani Ports and Special Economic Zone, India’s largest integrated ports and logistics company, said on October 27 at its fiscal second quarter presentation that it has decided against continuing building a container terminal in Myanmar amid deteriorating economic and humanitarian conditions in the country. “The company’s risk management committee, after a review of the situation, has decided to work on a plan on exiting the company’s investment in Myanmar, including exploring any divestment opportunities,” Adani said in a statement, without giving further details. The company is expected to fully exit from its investment in the troubled nation between March and...

Adani Ports and Special Economic Zone, India’s largest integrated ports and logistics company, said on October 27 at its fiscal second quarter presentation that it has decided against continuing building a container terminal in Myanmar amid deteriorating economic and humanitarian conditions in the country.

“The company’s risk management committee, after a review of the situation, has decided to work on a plan on exiting the company’s investment in Myanmar, including exploring any divestment opportunities,” Adani said in a statement, without giving further details.

The company is expected to fully exit from its investment in the troubled nation between March and June next year, the statement said.

Write-down of $127 million

Adani Ports said it has invested $127 million in Myanmar so far, including a $90-million upfront payment for leasing land, but noted that a write-down of this sum would not have a material impact as the project accounts for only about 1.3% of the company’s total assets.

Adani last year won the bid to build and operate Yangon International Terminal, an independent project fully-owned and developed by the Indian company.

A March report released by two rights groups cited documents purporting to show that an Adani unit would pay up to $30 million in land lease fees for the project to the Myanmar Economic Corporation, one of two military-controlled conglomerates in Myanmar under US sanctions.

Adani did not comment on the lease payments detailed in the report at the time, but later said it had a “zero-tolerance policy on sanctions.”



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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