DUBAI: Ports operator DP World Limited is selling its stakes in two container terminals and a logistics centre in Hong Kong for $742m as part of a rejig of assets in favour of fast-growing emerging markets.
It is the biggest asset sale by the world’s third-largest port operator since it offloaded most of its Australian business more than two years ago.
DP World, one of the more profitable units of debt-laden Dubai World, has been selling assets globally, exiting markets where it does not have a significant presence and seeking to redeploy funds in fast-growing markets.
“We believe Hong Kong will continue to be a very interesting market. However, our presence was small relative to the market,” Sultan Ahmed bin Sulayem, chairman of DP World said in a statement to the Nasdaq Dubai bourse yesterday.
As part of the deal, DP World will sell 75 percent of its stakes in container terminals CSX World Terminals Hong Kong Limited, which operates berth 3 of the Kwai Chung Container Terminal, and ATL Logistics Centre Hong Kong Limited (ATL) to a unit of Australian warehouse operator Goodman Group for $463m in cash.
The firm, which operates more than 60 terminals across six continents, is also selling its 55.2 percent stake in Asia Container Terminal Ltd, which operates Asia Container Terminal 8 West, to Hutchison Port Holdings Trust, a unit of conglomerate Hutchison Whampoa Ltd for $279m.
Hutchison Whampoa, a ports-to-telecoms group, is owned by Asia’s richest man Li Ka-shing.
Reuters
