DP World acquires port operator handling two Chilean ports
DP World has entered into an agreement to acquire a 71.3% stake in Puertos y Logistica S.A. (“Pulogsa”) from Minera Valparaiso and other shareholders associated with the Matte Group in Chile.
Pulogsa is listed on the Santiago stock exchange, and the acquisition will be effected via a tender offer to acquire all outstanding shares of the business.
DP World will offer US $502-million for 100% equity ownership. The acquisition is expected to be earnings accretive in the first full year of consolidation and it will be financed from existing balance sheet resources.
As of 30 September 2018, Pulogsa had net financial debt of $226m.
The transaction is subject to relevant third party consents and is expected to close in the first half of 2019.
The move marks a continuation of DP World’s global expansion, with South America becoming an increasingly important region for the global port operator.
Pulogsa operates a long-term concession for two terminals in the country, Puerto Central (PCE) in San Antonio, and owns and operates Puerto Lirquen (PLQ) in Chile’s Southern Region VIII.
PCE is a multipurpose terminal located in San Antonio, which is a gateway to the Chilean capital Santiago and to leading industrial, commercial and agricultural businesses.
It is one of the country's largest container ports (over 1-million TEU capacity) with recent infrastructure investments, making it the most modern terminal in Chile.
PCE has the potential for further capacity expansion for both container and non-container operations.
PLQ is a multipurpose terminal incorporating long term maritime concessions with freehold land ownership, which handles containers, break-bulk and dry bulk.
The port is strategically positioned to benefit from the well-established pulp and lumber industry in Southern Chile, next to the country’s second largest city and industrial hub, Concepción.
“We are delighted to extend our global footprint with a major entry into Chile, Latin America’s most developed economy, with attractive growth prospects and a dynamic business environment,” said DP World group chairman and CEO Sultan Ahmed Bin Sulayem.
“These new assets will allow DP World to serve cargo owners and shipping lines at five key gateways on the west coast of South America in Posorja (Ecuador), Callao and Paita (Peru) and San Antonio and Lirquen (Chile),” he added.