DP World Ltd., the Dubai-controlled container terminal operator, raised A$1.5 billion ($1.5 billion) selling a stake in its Australian unit as its parent works to reduce debts.
Citi Infrastructure Investors and a partner agreed to buy 75 percent of the unit, which operates terminals in five Australian ports, DP World said in a statement today. The company expects regulatory approval for the transaction by the end of the first quarter.
DP World plans to use all the proceeds to repay borrowings, as parent Dubai World delayed payment on more than $30 billion of debt and unpaid bills built up by constructing palm-shaped islands off the Dubai coast, and amassing stakes in companies including luxury retailer Barneys New York Inc. and U.S. casino group MGM Mirage. The deal will also pare DP World’s reliance on Australia as pending competition from Hutchison Port Holdings Ltd. threatens its market share of about 50 percent.
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