DP World Selling Stakes in Two Hong Kong Terminals

DP World Selling Stakes in Two Hong Kong Terminals

DP World announced the sale of stakes in two container terminals and a logistics centre in Hong Kong for $742 million as it refocuses investments on fast-growing emerging cargo markets.

The Dubai-based port operator said it will book a net gain of around $151 million from the latest rationalization of its global terminal network.

DP World is selling 75 percent of its stakes in CSX World Terminals, operator of berth three of the Kwai Chung Container Terminal, and the adjoining ATL Logistics Centre to Goodman Hong Kong Logistics Fund for $463 million.

DP World will continue to manage the businesses under the deal, which is expected to close toward the end of the first half of 2013 after receiving regulatory approvals.

The company is also selling its 55.16 percent interest in Asia Container Terminals Ltd, operator of Asia Container Terminal 8 West in Kwai Chung, to Hong Kong’s Hutchison Port Holdings Trust for $279 million. The transaction closed earlier today.

“We believe Hong Kong will continue to be a very interesting market. However, our presence was small relative to the market,” said DP World chairman Sultan Ahmed bin Sulayem.

“This reorganization, forming a strategic partnership and partially monetizing some assets, allows us to realise value and recycle capital into new, fast growing opportunities in other markets.”

Hutchison Port Holdings acquired all of Asia Container Terminals, paying around $129 million for the stake held by a unit of Singapore’s PSA International.