Global port operator DP World has acquired an additional stake in DP World Australia from Gateway Infrastructure Investments and other financial investors.
DP World Australia manages four terminals at each of Australia’s major ports (Sydney, Melbourne, Brisbane and Fremantle), with a capacity of four million twenty-foot equivalent units. It is now at an enterprise value of approximately AU$1.4 billion.
The acquisition is subject to regular approval and is expected to close in the first quarter of 2019.
Following the closure of the transaction, DP World Australia will become a consolidate entity with the DP World Group and is expected to be earnings neutral in the first full year of ownership.
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Corsair Infrastructure Partners, the manager of the Gateway Fund, will continue to manage a significant investment in DP World Australia.
DP World Group Chairman Sultan Ahmed Bin Sulayem said the DP World Australia has been brought back into the group’s consolidated portfolio, which presents a more optimal structure to drive the business forward.
“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,” he said.