Dubai: Global trade enabler DP World today announces that it has entered into an agreement to acquire 71.3% stake in Puertos y Logistica S.A. (“Pulogsa”) from Minera Valparaiso and other shareholders associated with the Matte Group. Pulogsa is listed on the Santiago stock exchange, and the acquisition will be effected via a tender offer to acquire all outstanding shares of the business. Under the tender process DP World will offer [US$502mn][1] in consideration for 100% equity ownership. As of 30 September 2018, Pulogsa had net financial debt of $226m. The acquisition is expected to be earnings accretive in the first full year of consolidation and it will be financed from existing balance sheet resources. The transaction is subject to relevant third party consents and is expected to close in the first half of 2019.
Pulogsa operates a long-term concession for Puerto Central (PCE) in San Antonio, in Chile’s Central Region V as well as owning and operating Puerto Lirquen (PLQ) in Chile’s Southern Region VIII.
PCE is a multipurpose terminal located in San Antonio, which is a gateway to the Chilean capital Santiago and to leading industrial, commercial and agricultural businesses. PCE is one of the country's largest container ports (over 1MN TEU capacity) with recent infrastructure investments, making it the most modern terminal in Chile. PCE has the potential for further capacity expansion for both container and non-container operations.
PLQ is a multipurpose terminal incorporating long term maritime concessions with freehold land ownership, which handles containers, break-bulk and dry bulk. The port is strategically positioned to benefit from the well-established pulp and lumber industry in Southern Chile, next to the country’s second largest city and industrial hub Concepción.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said, “We are delighted to extend our global footprint with a major entry into Chile, Latin America’s most developed economy, with attractive growth prospects and a dynamic business environment. These new assets will allow DP World to serve cargo owners and and shipping lines at five key gateways on the west coast of South America in Posorja (Ecuador), Callao and Paita (Peru) and San Antonio and Lirquen (Chile). PCE and PLQ are both ‘best in class’ terminals in their respective markets, with long-term operating rights, strong cargo diversification and significant capability for expansion. The overall value proposition for these terminals is compelling and the addition of capacity to our portfolio will help drive long-term value to all our stakeholders.
Scotiabank is acting as exclusive financial advisor to DP World.
-Ends-
Investor Enquiries:
Redwan Ahmed
DP World PLC
Mobile: +971505541557
Direct: +97148080842
Redwan.Ahmed@dpworld.com
Amin Fikree
DP World PLC
Mobile: +971566811553
Direct: +97148080923
Amin.Fikree@dpworld.com
About DP World:
DP World [1] is a leading enabler of global trade and an integral part of the supply chain.
We operate multiple yet related businesses – from marine and inland terminals, maritime services, logistics and ancillary services to technology-driven trade solutions.
We have a portfolio of 78 operating marine and inland terminals supported by over 50 related businesses in over 40 countries across six continents with a significant presence in both high-growth and mature markets. We aim to be essential to the bright future of global trade, ensuring everything we do has a long-lasting positive impact on economies and society.
Our dedicated team of over 45,000 employees from 103 countries cultivates long-standing relationships with governments, shipping lines, importers and exporters, communities, and many other important constituents of the global supply chain, to add value and provide quality services today and tomorrow.
Container handling is the company’s core business and generates more than three quarters of its revenue. In 2017, DP World handled 70.1 million TEU (twenty-foot equivalent units) across our portfolio. With its committed pipeline of developments and expansions, the current gross capacity of 88.2 million TEU is expected to rise to more than 100 million TEU by 2020, in line with market demand.
By thinking ahead, foreseeing change and innovating we aim to create the most productive, efficient and safe trade solutions globally.
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