DP World and Hassana Investment Company announce US$2.4 billion investment in DP World’s UAE assets
DP World and the Saudi Arabia-based Hassana Investment Company (Hassana), the investment manager for the General Organisation for Social Insurance (GOSI) – which owns one of the world’s largest pension funds – announced today an investment of approximately US$2.4 billion (SAR9.0 billion) in three of DP World’s flagship UAE assets. This sale of a strategic minority stake in Jebel Ali Port, Jebel Ali Free Zone and National Industries Park, follows on the earlier transaction that successfully closed in June 2022.
Hassana will invest approximately US$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% in the three UAE assets. The investment by Hassana 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 assets, 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 9,000 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.
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.
With the benefit of certain sub-concession arrangements with a term of up to 35 years. The head concession arrangements held by the DP World group in respect of the three assets have considerably longer terms.
