Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

DP World, CDPQ Announce $5 Bn Investment in Strategic Assets in the UAE

DP World, CDPQ Announce $5 Bn Investment in Strategic Assets in the UAE

Tuesday, 7 June, 2022 - 08:30
The Jebel Ali Port in Dubai. (WAM)

DP World announced it was selling a minority share to CDPQ, a global investment group, in three of DP World's flagship UAE assets.

CDPQ will invest $2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone, and the National Industries Park through a new joint venture in which it will hold a stake of approximately 22 percent, with the remainder of the transaction being financed by debt.

The Canadian fund will invest $5 billion in the three facilities.

"The transaction implies a total enterprise value of approximately $23 billion for the three assets," the company said in a statement, adding that other long-term investors will have the opportunity to acquire an additional stake of up to $3 billion.

DP World CEO Sultan Bin Sulayem said the transaction achieves the objective of reducing DP World's net leverage to below four times Net Debt to EBITDA, and this has been achieved despite the challenges of the pandemic and recent global economic conditions.

"Overall, we believe this transaction provides a strong platform for the UAE assets to meet their long-term growth objectives, while the stronger balance sheet supports the Group's wider end-to-end supply chain solution strategy, which will drive sustainable value for all DP World stakeholders."

DB World borrowed $8.1 billion in 2020 to fund Dubai's purchase of the stake of small shareholders and return the company to government ownership.

Editor Picks