Because we know it’s easier said than doneMay 28, 2015 9:53
DP World sells Hong Kong assets for $742 million
DP World has been selling assets globally since last year.
March 7, 2013 11:42 by Reuters
Dubai port operator DP World Limited is selling stakes in two container terminals and a logistics centre in Hong Kong for $742 million as it continues asset disposals in non-core international markets.
DP World, one of the more profitable assets of debt-laden Dubai World, has been selling assets globally since last year, exiting markets where it does not have a significant presence and redeploying funds in fast-growing markets.
“We believe Hong Kong will continue to be a very interesting market. However, our presence was small relative to the market,” Sultan Ahmed bin Sulayem, Chairman of DP World said in a statement to the Nasdaq Dubai bourse.
“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.”
DP World will sell 75 percent of its stakes in container terminals CSX World Terminals Hong Kong Limited and ATL Logistics Centre Hong Kong Limited (ATL) to a unit of Australian warehouse operator Goodman Group for $463 million in cash.
DP World is also selling all its 55.2 percent stake in Asia Container Terminal Ltd, which operates Asia Container Terminal 8 West (CT8), to Hutchison Port Holdings Trust, a unit of conglomerate Hutchison Whampoa Ltd for $279 million.
The disposals are expected to result in a net gain of $151 million for DP World and help boost its capital levels, the port operator said.
In a separate statement, Goodman said it plans to fund $300 million of the deal through raising additional equity. The Australian firm’s shares closed at a 4-year high of A$4.93.
DP World sold its quarter stake in a Russian container terminal to Global Ports Investment for $230 million in October last year.
The firm also sold its operations in Belgium in 2012 and also quit its venture in Yemen.
DP World shares were down 0.7 percent on Nasdaq Dubai. They have risen 12 percent year-to-date.