The ports operation arm of embattled Emirati state investor Dubai World has sold a majority stake in its Australian operations to Citi Infrastructure Investors (CII) for $1.5bn.
DP World, one of the best-performing assets in Dubai World’s troubled portfolio, said that it was to sell 75 per cent of the division, which includes five marine terminals in Australia, to CII in a deal valuing the division at $1.81bn. DP World is to retain 25 per cent, and will also generate revenue from the operations by continuing to manage the terminals.
DP World Australia operates container terminals in Brisbane, Sydney, Melbourne, Adelaide and Fremantle, with the capacity to handle around half of the total Australian container market. The company posted EBITDA of $96m for the year to 31 December 2009.
DP World said that the proceeds would go towards cutting its net debt as part of a drive to improve the flexibility of its balance sheet.
“Australia is a key market for Citi Infrastructure Investors where we have been working for some time,” said CII co-head Holly Koeppel, who has been instated as chairperson elect of DP World Australia.
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