DP World sells off Aussie operations

DP World will raise approximately USD$1.5 billion from the move – including the repayment of some money owed by the Australian branch to the main company.

DP World Australia operates container terminals in Brisbane, Sydney, Melbourne, Adelaide and Fremantle with capacity to handle in excess of 3.5m teu per annum, around half of the total Australian container market.

The money from this transaction will go towards reducing DP World’s net debt.

The company has formed what it calls “a strategic partnership” which includes Citi and one of the infrastructure group’s major investors, retaining a 25% interest in the terminals.

Yuvraj Narayan, CFO of DP World said this partnership, “provides a great opportunity for DP World to remain actively involved in Australia whilst delivering on our strategy to monetise assets as part of DP World’s ongoing goal to reduce leverage and focus on higher margin markets“.