Dubai-based ports operator DP World has acquired an additional stake in DP World Australia from Gateway Infrastructure Investments and other financial investors, it announced on Wednesday.
The deal values DP World Australia at an enterprise value of approximately A$1.4bn ($997m), a statement said.
The acquisition is subject to regulatory approval and is expected to close in the first quarter of this year.
Corsair Infrastructure Partners (CIP), the manager of the Gateway Fund, will continue to manage a “significant investment” in DP World Australia.
Following the closure of the transaction, DP World Australia will become a consolidated entity within the DP World Group and is expected to be earnings neutral in the first full year of ownership, the statement added.
DP World Australia, a container port operator, manages four terminals at each of Australia’s major ports (Sydney, Melbourne, Brisbane and Fremantle) with a capacity of approximately 4mn TEU’s.
In 2017, the company handled 3.4mn TEU’s and generated over $400m of revenues.
Along with core terminal and stevedoring operations, it is looking to grow the business through its logistics solutions business via DPW Logistics Australia and JVs (1-Stop and AWH).
DP World Group chairman and CEO Sultan Ahmed Bin Sulayem, said: “We are pleased to announce this transaction that brings DP World Australia back into our consolidated portfolio, which presents a more optimal structure to drive this business forward.
“We remain optimistic on the growth prospects in Australia and believe there is an exciting opportunity to enhance shareholder value by further developing the container terminals operations and expanding beyond the ports into logistics services.”