Adani Ports and Special Economic Zone Limited (APSEZ), on Wednesday, announced it will exit its investments in Myanmar following the military coup in the country and the economic sanctions imposed by the US.
The Board of Directors of the company met on October 27 and decided to exist the investments in Myanmar. “The divestment is expected to be completed by March 2022,” said the company in a regulatory filing with the stock exchanges.
Container terminal
APSEZ’s subsidiary in Singapore, through its wholly-owned subsidiary in Myanmar, had signed a Build, Operate and Transfer (BOT) agreement in May 2019 with Myanmar Economic Corporation (MEC), to set up an international container terminal at the Ahlone Port situated in the Yangon region in Myanmar.
APESZ informed that through these subsidiaries it had invested $151 million on the project up to September 30. “In light of subsequent military coup in Myanmar and continuity of sanctions imposed by the United States on MEC since February, the board, based on the recommendation of risk committee, decided on October 27 to exit its investment in Myanmar,” said the filing.
Notably, APSEZ was under watch of the international bodies for its Myanmar project.
S&P Dow Jones Indices had knocked off APSEZ from its sustainability index citing investments by the company in Myanmar, which came in conflict with the guidelines laid down for the sustainability index.
Till now, the company had maintained that it was following the US and other international restrictions on the country. It had also indicated to write down its investment in full if the economic sanctions continued on Myanmar.
APSEZ shares ended in the red at ₹745.65, down 0.56 per cent on the BSE on Wednesday.