Saudi investment company splashes $2.4 billion on DP World assets

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Saudi investment company splashes $2.4 billion in DP World assets

DP World and the Saudi Arabia-based Hassana Investment Company (Hassana) have announced an investment of approximately $2.4 billion in three of DP World’s UAE assets.

This sale of a minority stake in Jebel Ali Port, Jebel Ali Free Zone and National Industries Park, follows on an earlier $5 billion transaction closed in June 2022.

Hassana will invest in a new joint venture with the Emirati logistics company through which it will hold its economic interest in a stake of approximately 10.2 per cent in the three UAE assets.

The investment by Hassana implies a total enterprise value of approximately $23 billion for the three assets.

The Jebel Ali Port, Free Zone and National Industries Park generated pro-forma 2021 revenue of $1.9 billion.

DP World disclosed that after the 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.

“Hassana shares our long-term vision for the UAE assets, which have a long and sustained track record of growth and resilience,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.

“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, will support our target of achieving a strong investment-grade rating for the DP World group.”

Earlier this month, DP World and the Somalia’s government of Puntland have signed a construction agreement for expansion and upgrade works at the Port of Bosaso.

The 12-month project will include the development of a 150-metre quay, as well as repairs to the current 215-metre quay.

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