DP World Increases Stake in DP World Australia
DP World announces that it has acquired an additional stake in DP World Australia (Holding) Pty Ltd (DP World Australia) from Gateway Infrastructure Investments (Gateway) and other financial investors valuing DP World Australia at an enterprise value of approximately A$ 1.4 billion (USD 997 mn). The acquisition is subject to regulatory approval and is expected to close in 1Q2019. 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.
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 Fremantle) with a capacity of approximately 4mn TEU’s. In 2017, DPWA handled 3.4mn TEU’s and generated over USD400mn1 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).
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World,said: “We are pleased to announce this transaction that brings DP World Australia back into our consolidated portfolio, which presents a more optimal structure to drive this business forward, while continuing our relationship with CIP as a valued partner. 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.”
DP World is a leading enabler of global trade and an integral part of the supply chain.
We operate multiple yet related businesses – from marine and inland terminals, maritime services, logistics and ancillary services, to technology-driven trade solutions.
We have a portfolio of over 150 operations in over 45 countries across six continents, with a significant presence in both high-growth and mature markets. We aim to be essential to the bright future of global trade, ensuring that everything we do contributes positively and sustainably to both the economy and society.
Our dedicated team of more than 46,000 employees from 120 countries cultivates long-standing relationships with governments, shipping lines, importers and exporters, communities, and many other important constituents of the global supply chain, providing quality value-added services today and tomorrow.
Container handling is the company’s core business and generates more than 50% of its revenue. In 2018, DP World handled 71.4 million TEU (twenty-foot equivalent units) across our portfolio. With its committed pipeline of developments and expansions, the current gross capacity of 91 million TEU is expected to rise in line with market demand.
By thinking ahead, foreseeing change and innovating, DP World aims to create the most productive, efficient and safe trade solutions globally.