22/12/2010 - 14:57

Freo port operator sells Aust. stake

22/12/2010 - 14:57

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DP World, which is one of two major stevedoring companies operating in the port of Fremantle, has sold a 75 per cent stake in its Australian business to investment group Citi infrastructure Investments.

Freo port operator sells Aust. stake

DP World, which is one of two major stevedoring companies operating in the port of Fremantle, has sold a 75 per cent stake in its Australian business to investment group Citi infrastructure Investments.

The United Arab Emirates-based DP World will continue to manage its five Australian marine terminals with current staff as part of its strategic partnership with Citi (formerly Citibank).

The deal values the overall Australian business at $1.817 billion and will see DP World receive about $1.5 billion in total proceeds.

DP World, which handles around half of the Australian container market, will use the proceeds from the sale to pay off debt.

Chief executive Mohammed Sharaf said the strategic partnership with Citi would help DP World build its track record as a successful operator of container terminals.

"DP World has been operating terminals in Australia for over five years during which time all our terminals have undergone significant upgrades," he said.,

"Our commitment to the region has been recognised with the recent renewal of long-term concessions in Adelaide, Brisbane and Sydney."

CII co-head Holly Koeppel will become chairperson of DP World Australia once the deal is complete.

CII is part of Citi Capital Advisors.

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