Dubai's DP World increases investment in Australia terminals
Dubai-based port operator to take greater ownership of its Australian unit, valued at approximately $1.4bn
Dubai port operator DP World has increased its stake in its terminals in Australia.
The undisclosed stake in DP World’s Australian unit, which is valued at approximately $1.4bn ($997m), was acquired from Gateway Infrastructure Investments, as well as other investors, DP World said in a statement.
Gateway Infrastructure Investments is managed by Corsair Infrastructure Partners (CIP). CIP will continue to manage a significant investment in DP World Australia following the acquisition, which is expected to close in Q1 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.
Speaking on the deal, Sultan Ahmed Bin Sulayem, group chairman and chief executive officer at DP World, said: “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.”
In a separate CIP statement, Hari Rajan, managing director of Corsair and head of CIP, said: “We are pleased to have achieved the exit of Gateway’s investment in DPWA [DP World Australia], while maintaining our strong relationship with DP World through our continued management of a large investment in the company.
“We believe this new shareholder structure will further leverage the global capabilities of DP World and support the continued growth and development of DPWA’s container terminal and other businesses.”
Earlier this month, DP World entered into an agreement to buy a majority stake in Chilean port operator Puertos y Logistica (Pulogsa), taking control of two key port terminals in the South American state.