DP World and the Saudi Arabia-based Hassana Investment Company (Hassana) announced an investment of approximately US$2.4 billion (SAR9.0 billion) in three of DP World's flagship UAE assets.
In a statement, DP World said this sale of a "strategic minority stake" in Jebel Ali Port, Jebel Ali Free Zone and National Industries Park follow the earlier transaction that successfully closed in June 2022.
"Hassana will invest approximately US$2.4 billion in a new joint venture with DP World through which it will hold its economic interest in a stake of approximately 10.2% in the three UAE assets," the Emirati multinational logistics company said, adding that the investment by Hassana implies a total enterprise value of approximately US$23 billion for the three assets.
DP World noted that the Jebel Ali Port, Free Zone and National Industries Park together comprise a "best-in-class" group of infrastructure assets with a solid long-term track record of growth.
Combined, they form a world-class integrated ecosystem for the supply and logistics chains of over 9,000 companies from around the world, serving more than 3.5 billion people globally.
The three assets generated pro-forma 2021 revenue of US$1.9 billion.
DP World noted that after this investment, which closed on 19 December 2022, the three assets would remain fully consolidated businesses within the DP World Group, and their day-to-day operations, customers, service providers and employees will not be affected.
"We are delighted to announce this new partnership with Saudi Arabia-based Hassana, which manages one of the largest global pension funds. Hassana shares our long-term vision for 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," Bin Sulayem further said.
Saad bin Abdulmohsen Al-Fadly, CEO of Hassana Investment Company, for his part, noted the solid long-term track record of Jebel Ali, which is part of the new partnership with DP World.
"This partnership highlights our focus and strategy to invest in critical infrastructure assets in the region that we believe will deliver long-term sustainable returns," bin Abdulmohsen Al-Fadly added.
"Favourable demographics and macro-economic drivers and investment in transformational projects will continue to support growth momentum regionally, while trade between the emerging economies of Asia and Africa is also expected to thrive," the chief executive at Hassana added.
