Canada Fund CDPQ to Invest $5 Billion in DP World’s Dubai Assets - Bloomberg
Caisse de Depot et Placement du Quebec agreed to invest $5 billion in DP World’s Dubai assets as the port operator looks at ways to reduce its debt.
As part of the deal, the Montreal-based pension manager will take a 22% stake in DP World’s Jebel Ali Port, Jebel Ali Free Zone and the National Industries Park, according to a statement. It will invest $2.5 billion through a new joint venture, with the remainder of the transaction being financed by debt.
The transaction “achieves our objective of reducing DP World’s net leverage” to below four-times net debt to earnings before interest, taxes, depreciation, and amortization, the port operator’s Chief Executive Officer Sultan Ahmed Bin Sulayem said. “We believe this new partnership will enhance our assets and allow us to capture the significant growth potential of the wider region.”
Other long-term investors will have the opportunity to acquire an additional stake of up to $3 billion in the three assets, according to the statement.
State-owned DP World had been exploring the sale of equity stakes in certain assets as it works to reduce leverage and maintain its investment-grade rating. It agreed to buy the operator of the free zone in a $2.6 billion deal in 2014.
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