UAE-based terminal operator DP World is extending its South American footprint with acquisition of Chilean terminal operator with concessions at two ports.
DP World to offer $502m for 100% stake in Chilean terminal concessions which will eventually give it access to five key gateways in South America.
TERMINAL operator DP World has agreed to take a 71.1% stake in Chile’s Puertos y Logistica (Pulogsa) as it seeks to extend its global footprint.
Under the tender process DP World will offer $502m in consideration for 100% equity ownership. The shares are being sold by Minera Valparaiso and shareholders associated with the Matte Group.
Pulogsa operates a long-term concession for Puerto Central in San Antonio, as well as owning and operating Puerto Lirquen. Puerto Central has a capacity of over 1m teu and is Chile’s most modern terminal. Puerto Lirquen is a multipurpose terminal handling containers, breakbulk and dry bulk.
DP World chief executive Sultan Ahmed Bin Sulayem said the new assets would allow DP World to serve cargo owners and carriers at five key gateways on the west coast of South America.
Pulogsa is listed on the Santiago stock exchange, and the acquisition will be effected via a tender offer to acquire all outstanding shares of the business. As of September 30, 2018, Pulogsa had net financial debt of $226m.
The acquisition is expected to be earnings accretive in the first full year of consolidation and it will be financed from existing balance sheet resources. The transaction is subject to relevant third-party consents and is expected to close in the first half of 2019.