Dubai-based logistics heavyweight DP World and Saudi Arabia-based Hassana Investment Company, the investment manager for the General Organisation for Social Insurance (GOSI), have agreed on an investment of approximately $2.4 billion in three of DP World’s flagship UAE assets.
Hassana, the investment manager for GOSI, which owns one of the world’s largest pension funds, will invest approximately $2.4 billion in a new joint venture with DP World through which it will hold its economic interest in a stake of approximately 10.2%.
This sale of a strategic minority stake in Jebel Ali Port, Jebel Ali Free Zone and National Industries Park, follows the earlier $5 billion transaction that successfully closed in June 2022.
The investment by Hassana implies a total enterprise value of approximately US$23 billion for the three assets.
“We believe this new partnership will serve to enhance our assets and allow us to capture the significant growth potential of the wider market. The transaction further strengthens our balance sheet, which, combined with the continued resilience of our business, diversity in our portfolio and focus on supply chain solutions… Overall, we believe this partnership and transaction will drive sustainable value for all DP World stakeholders,” Sultan Ahmed Bin Sulayem , Group Chairman and CEO of DP World, said.
“This partnership highlights our focus and strategy to invest in critical infrastructure assets in the region that we believe will deliver long-term sustainable returns. Favourable demographics and macro-economic drivers and investment in transformational projects will continue to support growth momentum regionally, while trade between the emerging economies of Asia and Africa is also expected to thrive,” Saad bin Abdulmohsen Al-Fadly , CEO of Hassana Investment Company, added.
According to DP World, the Jebel Ali Port, Free Zone and National Industries Park together comprise a best-in-class group of infrastructure assets, with a solid long-term track record of growth.
After this investment, which closed on 19 December 2022, the three assets will remain fully consolidated businesses within the DP World Group, and their day-to-day operations, customers, service providers and employees will not be affected.
Last month, DP World revealed its plans to invest up to $500 million to cut CO2 emissions from its operations by nearly 700,000 tonnes over the next five years.
The move was announced by Sultan Ahmed Bin Sulayem while he was addressing delegates at the UN Climate Conference (COP 27) in Sharm El-Sheikh, Egypt earlier today by video.
He also reinforced DP World’s commitment to sustainability by taking on the Green Shipping Challenge (GSC). Launched earlier this year by US Special Presidential Envoy for Climate Change John Kerry and Norwegian Prime Minister Jonas Gahr Støre , the challenge encourages countries, ports, companies, and other actors in the shipping value chain to come forward with concrete announcements to further ocean-based climate actions.