DP World increases take in DP World Australia
DP World has acquired an additional stake in DP World Australia from Gateway Infrastructure Investments and other financial investors for US $997 million.
The acquisition is subject to regulatory approval and is expected to close in the first quarter of 2019.
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.
DP World Australia (DPWA) is a leading container port operator that manages 4 terminals at each of Australia’s major ports (Sydney, Melbourne, Brisbane and Fremantle) with a capacity of approximately 4-million TEU’s.
In 2017, DPWA handled 3.4-million TEU’s and generated over US $400-million in revenues. In addition to core terminal and stevedoring operations, DPWA 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).
“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,” said DP World group chairman and CEO Sultan Ahmed Bin Sulayem.
“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.