Dubai's DP World to acquire two Chile ports in $502m deal
The sale of the 71.3% stake in South America's Puertos y Logistica is expected to close in H1 2019
Dubai’s DP World has entered into an agreement to buy a majority stake in Chilean port operator Puertos y Logistica (Pulogsa) for $502m, taking control of two key port terminals in the South American state.
According to a filing on Nasdaq Dubai, where the state-owned port operator is listed, the group bought the 71.3% stake from Minera Valparaiso and other shareholders associated with Chilean conglomerate, the Matte Group.
Subject to relevant third-party consents, the deal is expected to close in the first half of 2019. DP World said the acquisition is expected to be earnings accretive in the first full year of consolidation and will be financed from existing balance sheet resources.
Listed on the Santiago stock exchange, Pulogsa operates a long-term concession for Puerto Central (PCE) in San Antonio and Chile’s Central Region V, as well as owning and operating Puerto Lirquen (PLQ) in the country’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. With a capacity of more than one million twenty-foot equivalent unit (TEU), it is one of the country's largest container ports.
PLQ is a multipurpose terminal incorporating long term maritime concessions with freehold land ownership, which handles containers, break-bulk and dry bulk. It 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.
Speaking on these additions, Sultan Ahmed Bin Sulayem, group chairman and chief executive officer at DP World, said: “These new assets will allow DP World to serve cargo owners and 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).
“PCE and PLQ are both ‘best in class’ terminals in their respective markets, with long-term operating rights, strong cargo diversification and significant capability for expansion.”
Last month DP World closed its $748.2m (EUR660m) acquisition of Unifeeder Group, three months after it signed the deal for the Danish transport and logistics giant.