DP World sell Hong Kong Assets

By Freddie Pierce
Dubais government backed port operator DP World has sold stakes in its Hong Kong assets, raising a total of $742 million from the sale of two container...

Dubai’s government backed port operator DP World has sold stakes in its Hong Kong assets, raising a total of $742 million from the sale of two container terminals and a logistics centre.

In a statement released on Thursday, the company announced the sale of 75 percent of its interests in CSX World Terminals Hong Kong Limited (CT3), which operates berth 3 of the Kwai Chung Container Terminal and ATL Logistics Centre Hong Kong Limited (ATL), a logistics centre located alongside CT3. DP World will manage its remaining stake in the companies in a strategic partnership with buyer Goodman Hong Kong Logistics Fund.

 In addition, DP World is selling 100 percent of its interest in Asia Container Terminal Ltd (ACT), which operates Asia Container Terminal 8 West (CT8) to Hutchison Port Holdings Trust, in a transaction which closed yesterday.

These are the latest in a number of overseas asset sales by DP World, which sold stakes in port businesses in Belgium and Yemen in September 2012. Part of the troubled Dubai World conglomerate, DP World was excluded from its parent company’s multibillion dollar restructuring.

Sultan Ahmed bin Sulayem, Chairman of DP World said:

“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.”

DP World, the third biggest port operator said its net gain will be $151 million because some money will go to repay shareholder loans. The company plan to re-invest the capital received from the two transactions.

Share

Featured Articles

Global logistics round-up: air, sea, road and rail news

DHL Supply Chain acquires Australian freight giant; Labour strikes hit German ports & UK rail networks; US East Coast eases West Coast container congestion

Asia holds key to future success, McKinsey tells CEOs

McKinsey urges CEOs to make Asia central to their business strategy, with geopolitical uncertainty, inflation, and supply chain disruption the new normal

Dynamic data key to unlocking supplier value - TealBook CEO

Stephany Lapierre, CEO and Founder of supplier data foundation organisation, TealBook, on how procurement can be transformed with dynamic supplier data

China manufacturing imports down 30% - US logistics firms

Logistics

Third-party supply risk 'key to survival' - Refinitiv report

Supply Chain Risk Management

Logistics global air, sea rail & road news round-up

Logistics