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Canada-based CDPQ, a global investment group, has announced an investment totalling US$5 billion in three of DP World’s key UAE assets, thereby giving it a minority stake in these businesses.
CDPQ will directly invest US$2.5 billion in Jebel Ali Port, Jebel Ali Free Zone and the National Industries Park through a new joint venture in which it will hold a stake of approximately 22%, with the remainder of the transaction being financed by debt. Other long-term investors will have the opportunity to acquire an additional stake in the venture of up to US$3 billion, it has been revealed. The transaction implies a total value of approximately US$23 billion for the three assets which will remain fully consolidated businesses within the DP World Group. Day-to-day operations, customers, service providers and employees will not be affected a DP World statement pointed out.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We believe this new partnership will enhance our assets and allow us to capture the significant growth potential of the wider region. The significant strengthening of our balance sheet, the continued resilience of our business, diversity in our portfolio and continued focus on supply chain solutions will support our target of achieving a strong investment-grade rating for the Group.”
This investment in Jebel Ali is another illustration of the growing partnership between CDPQ and DP World, which now spans four continents and eighteen terminals.
