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SUBSIDIARY VALUED AT $1bn

DP World increases stake in Australian unit

DUBAI, January 23, 2019

Dubai-based global marine terminal operator DP World has acquired an additional stake in DP World Australia (Holding) from Gateway Infrastructure Investments (Gateway) and other financial investors valuing DP World Australia at an enterprise value of approximately A$1.4 billion ($997 million).

The acquisition is subject to regulatory approval and is expected to close in first quarter 2019, said a statement from the company.

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, it said.

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

DP World Australia is a leading container port operator that manages four terminals at each of Australia’s major ports (Sydney, Melbourne, Brisbane and Fremantle) with a capacity of approximately 4mn TEU’s.  

In 2017, DP World Australia handled 3.4 million TEU’s and generated over $400 million of revenues.

In addition to core terminal and stevedoring operations, DP World Australia has a strategy to grow the business ‘beyond-the-gate’ through its vertically integrated logistics solutions via DPW Logistics Australia and JVs (1-Stop and AWH), said a statement.
 
Sultan Ahmed Bin Sulayem, group chairman and chief executive officer, 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,” he added. – TradeArabia News Service




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