DP World increases stake in DP World Australia

DP World has announced that it has acquired an additional stake in DP World Australia from Gateway Infrastructure Investments and other financial investors. DP World Australia  is now at an enterprise value of approximately A$ 1.4 billion.
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, the manager of the Gateway Fund, will continue to manage a significant investment in DP World Australia.
“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,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World said.
DP World Australia is a 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.