DP World sells Hong Kong assets for $742m

Dubai: DP World plans to sell stakes in two container terminals as well a logistics centre in Hong Kong for $742 million (Dh2.7 billion), the global ports operator said in a statement on Thursday. The move is a part of the ports operator’s global restructuring process.

As a part of the transactions DP World will sell 75 per cent of its interests in CSX World Terminals Hong Kong Limited, which operates the Kwai Chung Container Terminal and ATL Logistics Centre Hong Kong Limited, to Goodman Hong Kong Logistics Fund for a cash consideration of $463 million.

The transaction is expected to complete towards the end of the first half of 2013, subject to regulatory approvals, DP World said in the statement, adding it will continue to manage the port operations.

The other deal, which closed earlier on Thursday, saw DP World sell all its 55.2 per cent stake in Asia Container Terminal, which operates Asia Container Terminal 8 West (CT8), to Hutchison Port Holdings Trust for $279 million, according to the port operator.

“We believe Hong Kong will continue to be a very interesting market, however, our presence was small relative to the market. This reorganisation, forming a strategic partnership and partially monetising some assets, allows us to realise value and recycle capital into new, fast-growing opportunities in other markets,” Sultan Ahmad Bin Sulayem, Chairman of DP World, said in a statement.

The company further stated that the total consideration to be received for the two transactions includes repayment of certain shareholder loans. “The proceeds will go towards maintaining a strong capital position. The total net gain is expected to be approximately $151 million, subject to transaction costs and currency movements,” DP World said in the statement, adding that as at December 31, 2012, the value of the assets disposed of touched $653 million contributing a total of $39 million to the company’s gross profit.

In a similar move, DP World in December 2010 had sold 75 per cent of its Australia operations for $1.5 billion to private equity firm Citi Infrastructure Investors. Operating more than 60 terminals in six continents, the world’s third-largest ports operator is on track to open new capacity this year in Santos in Brazil, Jebel Ali in the UAE and London Gateway in the UK.