DP World Limited and Citi Infrastructure Investors (CII), together with one of CII’s major investors, have today formed a strategic partnership to invest in, operate and manage DP World’s five marine terminals in Australia.
DP World has entered into an agreement to provide management services to the Australian operation to continue to provide a consistently high level of service to our customers. Management and staff of DP World Australia will be retained.
DP World Australia operates container terminals in Brisbane, Sydney, Melbourne, Adelaide and Fremantle with capacity to handle in excess of 3.5 million TEU per annum, approximately 50% of the total Australian container market. For the twelve months to 31 December 2009, DP World Australia generated equity-adjusted EBITDA of A$ 96 million.
This transaction, which will see DP World monetise 75% of its shares in DP World Australia, values DP World Australia at an enterprise value of A$ 1,817 million at closing.
The total proceeds to be received by DP World will be approximately A$ 1.5 billion (USD 1.5 billion) including the repayment of certain intercompany balances owing from DP World Australia to DP World Limited. The total proceeds will go towards reducing DP World’s net debt as part of our overall strategy to improve balance sheet flexibility. Completion, subject to regulatory approvals, is expected towards the end of the first quarter of 2011.
About DP World
DP World is one of the largest marine terminal operators in the world, with 50 terminals and 11 new developments and major expansions across 31 countries. Its dedicated, experienced and professional team of nearly 30,000 people serves customers in some of the most dynamic economies in the world. DP World aims to enhance customers’ supply chain efficiency by effectively managing container, bulk and other terminal cargo.
The company constantly invests in terminal infrastructure, facilities and people, working closely with customers and business partners to provide quality services today and tomorrow, when and where customers need them. In taking this customer-centric approach, DP World is building on the established relationships and superior level of service demonstrated at its flagship Jebel Ali facility in Dubai, which has been voted “Best Seaport in the Middle East” for 16 consecutive years.
In 2009, DP World handled more than 43.4 million TEU (twenty-foot equivalent container units) across its portfolio from the Americas to Asia. With a pipeline of expansion and development projects in key growth markets, including India, China and the Middle East, capacity is expected to rise to around 92 million TEU by 2020, in line with market demand.
About Citi Infrastructure Investors:
Citi Infrastructure Investors (CII) is a part of Citi Capital Advisors, which brings together the combined benefits of investment managers with strong track records, a specialized operational platform and a global financial services firm. The result is a multi-layered approach to investing, operations and risk management. CII seeks to capitalize on the growing need for infrastructure funding around the world and increased private sector involvement in infrastructure-related investments.
CII pursues investment opportunities within infrastructure sectors such as transportation, utilities and energy, and maintains a primary geographic focus on the countries that make up the Organization for Economic Co-Operation and Development (OECD).
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Source: dpworld, December 23, 2010