DP World, one of the world’s largest marine terminal operators, and CDPQ, a global investment group, announced today (6 June) a $5 billion investment in three of DP World’s flagship assets in the UAE.
CDPQ will invest $2.5 billion in Jebel Ali Port, Jebel Ali Free Zone and National Industries Park through a new joint venture in which it will hold an approximate 22% stake, the remainder of the transaction being financed by debt.
Other long-term investors will have the opportunity to acquire an additional stake of up to $3 billion. The transaction involves a total enterprise value of approximately $23 billion for the three assets.
The Jebel Ali Port, Free Zone and National Industries Park together form a premier infrastructure cluster with a solid track record of long-term growth. Together, they form a world-class integrated ecosystem for the supply and logistics chains of more than 8,700 companies around the world, serving more than 3.5 billion people worldwide. The three assets generated pro forma revenue of $1.9 billion in 2021, according to a statement.
* Jebel Ali Port (JAP) – A leading international gateway port and the second largest outside of Asia, ideally located to serve the East-West trade corridor with its connectivity to 150 cities worldwide via over 180 shipping lanes.
* Jebel Ali Free Zone (JAFZ) – The largest free zone in the Middle East and one of the largest in the world. It is home to companies from 140 countries, including around 150 Fortune 500 companies.
* National Park of Industries (NIP) – A 21 km2 area designated for manufacturing and processing businesses.
All three assets will remain fully consolidated businesses within the DP World group, and day-to-day operations, customers, service providers and employees will not be affected.
Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World Group, said: “We are delighted to announce the expansion of our partnership with CDPQ. The co-investments of DP World and CDPQ have been very successful, thanks to our complementary expertise and our long-We believe that this new partnership will reinforce our assets and allow us to seize the significant growth potential of the region wide.
“The transaction also achieves our objective of reducing DP World’s net debt to less than 4x net debt to EBITDA and this was achieved despite the challenges of the pandemic and recent global economic conditions. The significant strengthening From our balance sheet, the continued resilience of our business, the diversity of our portfolio and the continued focus on supply chain solutions will support our aim to achieve a strong quality rating for the group.
“Overall, we believe this transaction provides a strong platform for the UAE assets to achieve their long-term growth objectives, while the stronger balance sheet supports the broader blockchain solution strategy. end-to-end sourcing from the group, which will generate sustainable value for all DP World stakeholders.”
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at la Caisse, said: “This investment in Jebel Ali is another fine illustration of the partnership between la Caisse and DP World, which now spans four continents and eighteen terminals.
“Today, we are pleased to deepen our long-standing relationship with a world-class logistics and supply chain operator by investing in this strategic business infrastructure, which will play a central role in the evolution of the global economy.DP World is well positioned to provide innovative solutions to their clients around the world, and we welcome this opportunity to invest in a world-class infrastructure group that provides CDPQ with exposure to new markets and fast-growing trade routes in Africa and South Asia,” Jaclot said.
Tranche 1 ($5 billion) of the transaction is expected to close in Q2 or Q3 2022, and Tranche 2 (up to $3 billion) is expected to close in Q4 2022. –
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