A flagship Adani group firm, the Adani Ports and Special Economic Zone Ltd (or APSEZ) has reportedly concluded the Myanmar Port sale for a cumulative consideration of about $30 million. The Adani group declared the Myanmar port sale in one of its latest exchange communications on Thursday. Following the announcement of this stock market news, Adani Ports’ share price gained some momentum from early morning losses and soon turned green, adding 1.50% from the intraday low.
Details on the sales deal of the Myanmar port
Given the continuous delay in the approval procedure and challenges in meeting CPs, the APSEZ has managed to obtain an independent valuation on an “as is, where is” model. Thereby, the seller and buyer have renegotiated the sale consideration to about $30 million. The buyer is going to pay the mentioned amount to the seller within three business days of executing necessary compliance checks by the seller. On receipt of the transaction value, APSEZ is going to transfer the equity to the buyer, and the exit shall stand concluded.
Adani Ports’ share price
Similar to other Adani group shares, the share price of Adani Ports got under a huge sell-off stress following the Hindenburg Research findings on the Adani group of firms, raising serious concerns regarding the debt positioning of the group companies. However, on tumbling from ₹761.20 apiece levels to ₹395 odd levels, Adani Ports’ share price is ₹675 today, per share levels on the NSE, surging about 70% from its lifetime low recorded in the last three months. The Adani group share, however, is more than 30% away from its lifetime high of about ₹987.85 apiece level on the NSE.
Adani Ports news
In Q4 FY 2023, Life Insurance Corporation (LIC) and mutual funds of India trimmed stakes in flagship Adani group firm Adani Ports and Special Economic Zone Ltd. Per the pattern of shareholding of Adani Ports, mutual funds have also trimmed stakes in the key business of Gautam Adani-supported firm to 3.09% from 4.43% during January to March this year’s quarter. LIC brought down its stake in the Adani group company to 9.12% from 9.14% during Q4 FY 2023. Adani Ports have also recently said that it handled 32.3 million metric tons (mmt) of total cargo in April, 12.8% on a year-on-year basis.
References: Livemint, Economic Times