DP World announced the acquisition of an additional stake in 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 (US$ 997 million).
The acquisition is subject to regulatory approval and is expected to close in the first quarter of 2019. If approved, DP World, the original corporate parent of DPWA, will hold a majority stake in the company, alongside a substantial minority investment by CIP-managed funds.
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.
We are pleased to have achieved the exit of Gateway’s investment in DPWA, while maintaining our strong relationship with DP World through our continued management of a large investment in the company. We believe this new shareholder structure will further leverage the global capabilities of DP World and support the continued growth and development of DPWA’s container terminal and other businesses,
…Hari R. Rajan, Managing Director of Corsair and Head of CIP, 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 operations and expanding beyond the ports into logistics services,
…Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, stated.
DP World Australia is the leading container terminal stevedore in Australia, managing four terminals in Sydney, Melbourne, Brisbane and Fremantle. In 2017, DPWA handled 3.4mn TEUs.