DP World raises $1.5 billion on sale of Australian port assets
22 Dec 2010
DP World has sold a 75 per cent stake in its Australian port operations to US-based Citi Infrastructure Investors in a deal that unlocked $1.5 billion from its Australian assets while the company retained management control and brand rights.
The transaction, which will see DP World monetise 75 per cent of its shares in DP World Australia, values DP World Australia at an enterprise value of A$1,817 million.
The net proceeds to be received by DP World, of approximately A$1.5 billion ($1.5 billion), including the repayment of certain intercompany balances to DP World Limited, will go towards reducing DP World's net debt and improve balance sheet flexibility, the company said in a statement.
DP World will keep its staff and continue managing container ports in Sydney, Melbourne, Perth, Adelaide and Brisbane under the deal while Citi Infrastructure co-head Holly Koeppel will become chairperson of DP World Australia.
"We are delighted that Citi Infrastructure Investors are joining us as strategic partners in Australia. We share a long-term commitment to invest in and grow our terminals in the region over the long term, and together we look forward to building on our successful track record of operating container terminals in the region," Mohammed Sharaf, CEO of DP World, said.
"DP World has been operating terminals in Australia for over five years during which time all our terminals have undergone significant upgrades, including investment in new quay side cranes to improve efficiencies for our customers. Our commitment to the region has been recognised with the recent renewal of long-term concessions in Adelaide, Brisbane and Sydney," he added.
