REG - DP World Limited - DP World and CDPQ Announce US$5 billion Investment

MicrosoftAnnouncement

06/06/2022 10:15

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RNS Number : 8157N  DP World Limited  06 June 2022

 

DP World and CDPQ Announce US$5 billion Investment in Strategic Assets in the
UAE

Global investment group CDPQ will take an approximately 22% stake in Jebel Ali
Port,

Jebel Ali Free Zone and the National Industries Park

UAE assets valued at approximately US$23 billion 1  (#_ftn1)

 

06 June 2022, Dubai, UAE, and Montréal, Canada - DP World, a global
infrastructure-led supply chain solutions provider, and CDPQ, a global
investment group, announced today an investment of US$5 billion
(CA$6.3 billion) in three of DP World's flagship UAE assets.

CDPQ will invest US$2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone
and the National Industries Park through a new joint venture in which it will
hold a stake of approximately 22% 2  (#_ftn2) , with the remainder of the
transaction being financed by debt. Other long-term investors will 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 assets.

The Jebel Ali Port, Free Zone and National Industries Park together comprise a
best-in-class group of infrastructure with a solid long-term track record of
growth. Combined, they form a world-class integrated ecosystem for the supply
and logistics chains of over 8,700 companies from around the world, serving
more than 3.5 billion people globally. The three assets generated
pro-forma 2021 revenue of US$1.9 billion.

·    Jebel Ali Port (JAP) - A leading international gateway port and the
second largest outside of Asia, ideally located to serve the East-West trade
corridor through its connectivity to 150 cities globally via 180+ shipping
lanes.

 

·    Jebel Ali Free Zone (JAFZ) - The largest free zone in the Middle East
and one of the largest in the world. It is home to companies from
140 countries, including approximately 150 Fortune 500 enterprises.

 

·    National Industries Park (NIP) - A 21 sq. km area designated for
manufacturing and processing companies.

 

The three assets will remain fully consolidated businesses within the
DP World Group and day-to-day operations, customers, service providers and
employees will not be affected.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: "We are
delighted to announce the broadening of our partnership with CDPQ. The DP
World and CDPQ co-investments have been very successful thanks to our
complementary expertise and long-term investment horizon. We believe this new
partnership will enhance our assets and allow us to capture the significant
growth potential of the wider region. The transaction 3  (#_ftn3) also
achieves our objective of reducing DP World's net leverage to below 4x Net
Debt to EBITDA and this has been achieved despite the challenges of the
pandemic and recent global economic conditions.  The significant
strengthening of our balance sheet, the continued resilience of our business,
diversity in our portfolio and continued focus on supply chain solutions will
support our target of achieving a strong investment-grade rating for the
Group. Overall, we believe this transaction provides a strong platform for the
UAE assets to meet their long-term growth objectives, while the stronger
balance sheet supports the Group's wider end-to-end supply chain solution
strategy, which will drive sustainable value for all DP World stakeholders."
 

Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ,
said: "This investment in Jebel Ali is another great illustration of the
partnership between CDPQ and DP World, which now spans four continents and
eighteen terminals. Today, we are pleased to deepen our long-standing
relationship with a world-class logistics and supply chain operator by
investing in this strategic trade infrastructure, one that will play a pivotal
role in the evolution of the global economy. DP World is well positioned to
provide innovative solutions to their customers worldwide, and we welcome this
opportunity to invest in a best-in-class group of infrastructure that provides
CDPQ with exposure to new fast-growing markets and trade routes in Africa and
South Asia."

Tranche 1 (US$5 billion) of the transaction is expected to close in the second
or third quarter of 2022, and tranche 2 (up to US$3 billion) is expected to
close during the fourth quarter of 2022.

Advisors working on the transaction included Canaccord Genuity (Dubai) Ltd,
Citigroup Global Markets Limited, Deutsche Bank AG, Emirates NBD Bank PJSC,
First Abu Dhabi Bank PJSC, J.P. Morgan Securities plc and Standard Chartered
Bank.

 

---- END ----

 

Investor and Media Enquiries:

 

For DP World Limited
 
            For CDPQ

Redwan Ahmed
Amin Fikree
            Conrad Harrington

Mobile: +971 50 5541557                   Mobile: +971 56
6811553                   + 1 514 847-5493

Direct: +971 4 8080842                      Direct: +971 4
8080923                      charrington@cdpq.com
(mailto:charrington@cdpq.com)

Redwan.Ahmed@dpworld.com (mailto:Redwan.Ahmed@dpworld.com)
Amin.Fikree@dpworld.com (mailto:Amin.Fikree@dpworld.com)

 

About DP World

We are a leading provider of worldwide smart end-to-end supply chain
logistics, enabling the flow of trade across the globe. Our comprehensive
range of products and services covers every link of the supply chain - from
maritime and inland terminals to marine services and industrial parks as well
as technology-driven customer solutions.

 We deliver these services through an interconnected global network of 295
business units in 78 countries across six continents, with a significant
presence both in high-growth and mature markets. Wherever we operate, we
integrate sustainability and responsible corporate citizenship into our
activities, striving for a positive contribution to the economies and
communities where we live and work.

Our dedicated, diverse, and professional team of more than 97,500 individuals
from 158 countries are committed to delivering unrivalled value to our
customers and partners. We do this by focusing on mutually beneficial
relationships-with governments, shippers, traders, and other stakeholders
along the global supply chain-relationships built on a foundation of mutual
trust and enduring partnership.

We think ahead, anticipate change, and deploy industry-leading digital
technology to further broaden our vision to disrupt world trade and create
smart, efficient, and innovative solutions, while ensuring a positive and
sustainable impact on economies, societies and our planet.

 

About CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the
long term. As a global investment group managing funds for public pension and
insurance plans, we work alongside our partners to build enterprises that
drive performance and progress. We are active in the major financial markets,
private equity, infrastructure, real estate and private debt. As at
December 31, 2021, CDPQ's net assets totalled CAD 420 billion. For more
information, visit cdpq.com (http://www.cdpq.com/en) , follow us on Twitter
(https://twitter.com/laCDPQ?lang=en) or consult our Facebook
(https://www.facebook.com/CDPQ-886100618136035/) or LinkedIn
(https://www.linkedin.com/company/cdpq) pages.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du
Québec and licensed for use by its subsidiaries.

 

Monday, 6(th) June 2022, 5:00pm UAE (2:00pm UK) Conference Call

1)   Conference call for to discuss the transaction will hosted by Yuvraj
Narayan.

2)   A playback of the call will be available after the conference call
concludes. For the dial in details and playback details please contact
investor.relations@dpworld.com (mailto:investor.relations@dpworld.com) .

 

 

 

 1  (#_ftnref1) Enterprise Value

 2  (#_ftnref2) Through a sub-concession of up to 35 years

 3  (#_ftnref3) Pro-forma upon closing and Pre IFRS 16.

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