DP World sells Hong Kong port assets for $742m to fund expansion elsewherePosted on 07 March 2013 with no comments from readers
Dubai port operator, the third largest in the world, DP World is selling a bundle of port assets in Hong Kong for $742 million in Hong Kong to fund expansion in other markets, and presumably because it can now get a good price for these assets.
DP World is parting with 75 percent of its stake in CSX World Terminals and ATL Logistics Centre that are being bought by Goodman Hong Kong Logistics Fund for $463 million. And its 55 per cent stake in Asia Container Terminals will be sold to Hutchison Port Holdings Trust for $279 million.
‘This reorganization, forming a strategic partnership and partially monetizing some assets, allows us to realize value and recycle capital into new, fast growing opportunities in other markets,’ said DP World Chairman Sultan Ahmed bin Sulayem.
The Nasdaq Dubai and London quoted company said it will make a net capital gain of $151 million from the two transactions. In December 2010 it sold 75 per cent of its Australia operations for $1.5 billion to Citi.
DP World shares are up 18 per cent in the year-to-date and have rebounded very strongly since the darkest days of 2009 and the collapse of global trade. But they remain a proxy on the health of the global economy and could be close to the top of their cycle.