Under a joint venture structure, Canadian investment group CDPQ will take a minority stake in DP World’s Jebel Ali Port, Jebel Ali Free Zone and National Industries Park for US$5 billion.
Additionally, other long-term investors have the opportunity to acquire an additional stake of up to US$3 billion.
The transaction implies a total enterprise value of approximately US$23 billion for the three businesses.
The businesses will remain fully consolidated within the DP World group, and their day-to-day operations, customers, service providers and employees will not be affected, according to a statement by Addleshaw Goddard, which acted as co-adviser to DP World alongside Clifford Chance.
This is not the first time that DP World and CDPQ decided to partner as the two companies launched their global joint investment platform in 2016.
Jebel Ali Port, Jebel Ali Free Zone and National Industries Park comprise an integrated ecosystem for the supply and logistics chains of over 8,700 companies from around the world, and generate a significant proportion of Dubai’s gross domestic product (GDP). The three assets generated pro-forma 2021 revenue of US$1.9 billion.
Partner Ian Le Pelley, who leads the Addleshaw Goddard team, commented, “This partnership will see the establishment of an important joint venture relating to the largest international gateway port in the Middle East and the largest free zone – assets which comprise strategic trade infrastructure and which play a pivotal role in the global economy.”
He pointed out that “this investment significantly strengthens DP World’s balance sheet, which will help support its wider end-to-end supply chain solution strategy.”
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