DP World buys additional stake in Australian unit

DUBAI / WAM

DP World on Wednesday announced that it has acquired an additional stake in DP World Australia (DPWA) from Gateway Infrastructure Investments and other financial investors, valuing DP World Australia at an enterprise val-ue of approximately AU$1.4 billion ($997 million).
The acquisition is subject to regulatory approval and 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. Corsair Infrastructure Partners (CIP), the manager of the Gateway Fund, will continue to manage a significant investment in 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 Frem-antle) with a capacity of approximately 4mn TEU’s. In 2017, DPWA handled 3.4mn TEU’s and generated over $400mn of 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).
Commenting on the announcement, Sultan Ahmed Bin Sulayem, Group Chairman and CEO, 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 operatio-ns and expanding beyond the ports into logistics services.”