DP World, the container terminal operator, is to sell a majority stake in its Australian subsidiary to Citi Infrastructure Investors, a private equity company, for A$1.5bn ($1.5bn).
Dubai-listed DP World announced on Wednesday that it was selling the stake to CII and an unnamed partner described as “a major investor”. The company will continue to operate the container terminals at Brisbane, Sydney, Melbourne, Adelaide and Fremantle under a management contract.
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The company said that it expected regulatory approval by the end of the first quarter next year.
DP World said the proceeds of the sale to CII would go towards reducing net debt as part of a strategy “to improve balance sheet flexibility”.
DP World is one of the healthier divisions of Dubai World, the indebted conglomerate, and was excluded from a round of debt restructuring earlier this year. In November last year the Dubai World shocked global markets when it asked for a moratorium on repaying its debts. It has subsequently secured a $25bn restructuring agreement with creditors.
DP World has the widest geographical spread of any of the world’s leading port groups, with operations in Latin America, Africa, the Middle East and Asia. The capacity of the five Australian ports is in excess of 3.5m 20ft-equivalent units a year, a common industry measure, which the company said constituted roughly half the total Australian container market.
The deal values DP World Australia at A$1.817m, the company said. DP World was advised by Deutsche Bank and Citgroup Global Markets while CII was advised by HSBC and UBS.
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Dubai-listed DP World announced on Wednesday that it was selling the stake to CII and an unnamed partner described as “a major investor”. The company will continue to operate the container terminals at Brisbane, Sydney, Melbourne, Adelaide and Fremantle under a management contract.
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The company said that it expected regulatory approval by the end of the first quarter next year.
DP World said the proceeds of the sale to CII would go towards reducing net debt as part of a strategy “to improve balance sheet flexibility”.
DP World is one of the healthier divisions of Dubai World, the indebted conglomerate, and was excluded from a round of debt restructuring earlier this year. In November last year the Dubai World shocked global markets when it asked for a moratorium on repaying its debts. It has subsequently secured a $25bn restructuring agreement with creditors.
DP World has the widest geographical spread of any of the world’s leading port groups, with operations in Latin America, Africa, the Middle East and Asia. The capacity of the five Australian ports is in excess of 3.5m 20ft-equivalent units a year, a common industry measure, which the company said constituted roughly half the total Australian container market.
The deal values DP World Australia at A$1.817m, the company said. DP World was advised by Deutsche Bank and Citgroup Global Markets while CII was advised by HSBC and UBS.
Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
Source http://www.ft.com/cms/s/0/97a6b220-0daa-11e0-8b53-00144feabdc0.html#axzz18pfuM6kn
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