HK Container Terminal Interests Cashed-in by DP World
DP World has entered into two transactions to monetise its interests in two container terminals & a logistics centre in Hong Kong.
The transactions will see DP World (DPWRF) monetise 75% of its interests in CSX World Terminals Hong Kong Limited (CT3), which operates berth 3 of the Kwai Chung Container Terminal (‘CT3’) and ATL Logistics Centre Hong Kong Limited (ATL), a logistics centre located alongside CT3, and 100% of its interest in Asia Container Terminal Ltd (ACT), which operates Asia Container Terminal 8 West (CT8).
The total consideration to be received by DP World for the two transactions is USD 742 million including the repayment of certain shareholder loans. The proceeds will go towards maintaining a strong capital position. The total net gain is expected to be approximately USD 151 million, subject to transaction costs and currency movements.
DP World will divest 75% of its equity interests in CT3 and ATL, for a cash consideration of USD 463 million, to Goodman Hong Kong Logistics Fund, to form a strategic partnership in respect of these assets.
As part of the strategic partnership, DP World will continue to manage the port operations. Completion, subject to regulatory approvals, is expected to be towards the end of the first half of 2013.
DP World will also divest all its 55.16% interest in Asia Container Terminals Holdings Limited, the holding company of the entity that owns and operates CT8, for a cash consideration of HK$2,161 million (USD 279 million), to Hutchison Port Holdings Trust (NS8U.SI) (HPH Trust). This transaction closed earlier today.
As at 31 December 2012 the value of the assets disposed of was USD 653 million and they contributed a total of USD 39 million1 to DP World’s gross profit.
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.”