Caisse de dépôt et placement du Québec (CDPQ) is investing US$5bn (€4.66bn) for a 22% stake in three assets in UAE owned by port operator DP World.
CDPQ is acquiring stakes in DP World’s Jebel Ali Port, Jebel Ali Free Zone and National Industries Park by investing US$2.5bn and will fund the remainder of the transaction with debt.
The companies said other investors will have the opportunity to acquire an additional stake of up to US$3bn in the newly created venture. The deal gives the three assets a total enterprise value of approximately US$23bn.
CDPQ and DP World already own a global ports and terminals platform which was launched in December 2016 and has since invested in port terminals globally and across various stages of the asset life cycle. DP World holds 55% share of the platform and CDPQ the remaining 45% stake.
Sultan Ahmed Bin Sulayem, group chairman and CEO at 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.”
Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ, said with the latest investment, the partnership between CDPQ and DP World 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.”
Jebel Ali Port is an international gateway port and the second largest outside of Asia. Jebel Ali Free Zone is the largest free zone in the Middle East and one of the largest in the world. The National Industries Park is a 21sq km area designated for manufacturing and processing companies.
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