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.”
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.”
