LONDON: The Dubai-based DP World is set to buy a 71.3 percent stake in the Chilean port services firm Puertos y Logistica, known as Pulogsa.
The move will give DP World exposure to several terminals in Chile, with Pulogsa holding a long-term concession for Puerto Central (PCE) in San Antonio, as well as owning and operating Puerto Lirquen (PLQ) terminal.
The Dubai port operator said it has entered into an agreement to acquire the stake from Minera Valparaiso and other shareholders associated with the Matte Group.
Under a tender process to acquire all outstanding shares of the business, DP World will offer $502 million in consideration for 100 percent equity ownership, according to a statement.
The acquisition will be financed from existing balance sheet resources, and is expected to close in the first half of 2019, the statement said.
Pulogsa, which is listed on the Santiago stock exchange, had net financial debt of $226 million as at Sept. 30, 2018, the statement added.
“We are delighted to extend our global footprint with a major entry into Chile, Latin America’s most developed economy, with attractive growth prospects and a dynamic business environment,” said DP World Group Chairman and CEO Sultan Ahmed bin Sulayem.
“These new assets will allow DP World to serve cargo owners and shipping lines at five key gateways on the west coast of South America.”
The PCE terminal, in San Antonio, is one of Chile’s largest container ports, with a capacity of over 1 million twenty-foot-equivalent units (TEUs), a standard measurement in shipping.
“PCE and PLQ are both ‘best in class’ terminals in their respective markets, with long-term operating rights, strong cargo diversification and significant capability for expansion. The overall value proposition for these terminals is compelling and the addition of capacity to our portfolio will help drive long-term value to all our stakeholders,” said Sulayem.