Dubai’s DP World in $500m deal to buy Chile port firm

Dubai’s DP World said it would offer $502 million for 100 percent equity ownership. (Reuters)
Updated 13 January 2019

Dubai’s DP World in $500m deal to buy Chile port firm

  • Pulogsa operates concession for Puerto Central in San Antonio and owns and operates Puerto Lirquen terminal
  • DP World is one of the world’s largest port operators

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.


Saudi finance minister reassures public on taxes

Updated 10 December 2019

Saudi finance minister reassures public on taxes

  • Mohammed Al-Jadaan: There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully
  • The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year

RIYADH: Saudi finance minister Mohammed Al-Jadaan pledged that there would be no more taxes or fees introduced in the Kingdom until the social and economic impact of such a move had been fully reviewed.

He was speaking at the 2020 Budget Meeting Sessions, organized by the Ministry of Finance and held in Riyadh on Tuesday, where a number of ministers and senior officials gathered following the publication of the budget on Monday evening.

“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” said Al-Jadaan.

The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year and more than 10 percent higher than the expected budget for this year. 

Most of that increase has come from taxes on goods and services which rose substantially as a result of the improvement in economic activity over the year.

The reassurances from the minister come as the Saudi budget deficit is estimated to widen to about SR187 billion, next year, or about 6.4 percent of GDP.