Dubai’s DP World raises stake in Australian port operator

DP World on Wednesday announced that it has acquired an additional stake in DP World Australia (DPWA) from Gateway Infrastructure Investments and other financial investors.

The deal values DP World Australia at an enterprise value of approximately AU$1.4 billion ($997 million).

The acquisition is subject to regulatory approval and is expected to close by the end of March, a statement said.
Following the closure of the transaction, DP World Australia will become a consolidated entity within the DP World Group and is expected to be earnings neutral in the first full year of ownership.

Corsair Infrastructure Partners (CIP), the manager of the Gateway Fund, will continue to manage a significant investment in DP World Australia.

DPWA is a container port operator that manages four terminals at each of Australia’s major ports in Sydney, Melbourne, Brisbane and Fremantle with a capacity of approximately 4 million TEUs.

In 2017, DPWA handled 3.4 million TEUs and generated over $400 million of revenues.

Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “We are pleased to announce this transaction that brings DP World Australia back into our consolidated portfolio, which presents a more optimal structure to drive this business forward, while continuing our relationship with CIP as a valued partner.

“We remain optimistic on the growth prospects in Australia and believe there is an exciting opportunity to enhance shareholder value by further developing the container terminals operations and expanding beyond the ports into logistics services.”

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Source link Finance News Australia

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