Shares sale complete

Saudi Arabia’s Public Investment Fund (PIF) and China’s COSCO SHIPPING Ports Limited (CSPL) have each acquired 20% equity interest in RSGT, based at Jeddah Islamic Port in Saudi Arabia.

Jens O. Floe, CEO of RSGT, said: “This is a significant milestone for RSGT’s, demonstrating both our strength a business and the confidence which the industry and investment community have in our strategic planning and implementation. Working closely with PIF and CSPL, we will accelerate our shared vision, further strengthen our customer offering, and elevate our mandate to meet the increasing demand for terminal and logistics services. RSGT will continue to focus on developing a niche emerging market operator with a keen focus on ports in the Red Sea and East Africa.”

US$880m enterprise value

The transactions imply an enterprise value for RSGT of US$880m and a total gross inflow of equity value for the founding shareholders of US$280m. The founding shareholders will reduce their combined shareholding to 60%.

PIF’s investment in RSGT is in line with PIF’s 2021-2025 strategy that focuses on 13 key priority sectors, including transport and logistics. The terminal’s location is on the main East-West trade routes, with close proximity to the main cargo end destinations on the West Coast of Saudi Arabia and captures significant intra-Red Sea trans-shipment cargo volumes. RSGT said the investment will help to transform the terminal into both a regional and global logistics hub, in line with PIF’s mission of unlocking new economic opportunities locally and globally.

RSGT added CSPL’s support will bring new momentum to the business growth of the terminal. It added that both new shareholders will help drive future growth on seaside and landside logistics.