Corsair exits DP World Australia

Financial terms were not disclosed. DP World Australia is recognized as the country’s biggest port terminal and supply chain operator and has been valued at about A$1.4 billion ($990 million). The deal is expected to close within the first quarter of 2019.

According to a statement, the company’s Dubai-based parent, DP World, will take a majority stake, while new funds managed by Corsair’s infrastructure business will retain a substantial minority holding. Corsair Infrastructure Partners (CIP) acquired a controlling position in DP World Australia in 2011 via a $2.9 billion fund known as Gateway Infrastructure Investments.

DP World Australia manages four terminals at each of Australia’s major ports, including Sydney, Melbourne, Brisbane, and Fremantle. The company typically provides stevedoring and supply chain services to about 1,700 ships, 1.5 million trucks, 2.1 million containers, and 3,100 trains per year. In 2017, it generated revenue of $400 million.

“We remain optimistic on the growth prospects in Australia and believe there is an exciting opportunity to enhance shareholder value by further developing the container terminals operations and expanding beyond the ports into logistics services,” Sultan Ahmed Bin Sulayem, group chairman and CEO for DP World, said in a separate release.

US-based Corsair established CIP in 2015 with a global mandate for key infrastructure sub-sectors, especially transportation and logistics. Gateway was set up in 2007 by Citigroup, which remains an LP in the vehicle alongside Canada’s PSP Investments and Australia’s Future Fund, the latter of which contributed to a A$9.7 billion investment in the Port of Melbourne in 2016.

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• Topics
• Australasia
• Exits
• Trade sale
• Infrastructure
• Australia
• Logistics
• shipping