DP World and Terminal Link SA have agreed to restructure Portsynergy SAS (Port Synergy), a 50:50 joint venture company operating two major container terminals in France.
Port Synergy is the holding company for subsidiary companies, Générale de Manutention Portuaire SA (GMP) and Eurofos SARL (Eurofos), which operate container terminals under long-term concession agreements in Le Havre and in Port of Fos respectively.
Terminal Link will acquire a controlling majority in GMP of Le Havre. DP World will sell its shares in Le Havre to funds worth €700 million ($770 million).
Under the terms of the restructuring, DP World will consolidate Eurofos under IFRS 10 whilst maintaining a 50:50 ownership structure between DP World and Terminal Link.
The transaction is subject to completion conditions including consultation with relevant works councils of the Port Synergy group and regulatory approvals and is expected to close in 1H2022.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are pleased to announce this transaction that will enable us to consolidate our position in Eurofos (France).
“The Port Synergy joint venture with Terminal Link has been successful, but this restructuring will further optimise the shareholding structure and will allow both DP World and Terminal Link to take IFRS10 control of assets where we add greater value respectively.
“The Eurofos terminal is important to DP World’s long-term strategy as a leading Mediterranean port and we are excited to focus on unlocking the substantial growth prospects of Fos, which will add significant value for all our stakeholders.”
Terminal Link SA is a joint venture 51 per cent owned by CMA CGM and 49 per cent owned by China Merchants Port.