DIC buys stake in Hutchison port

(NIC GIBSON)   

 
Mena Infrastructure Fund, set up by Dubai International Capital subsidiary DIC Asset Management in association with HSBC Bank Middle East and Waha Capital, on Thursday said it acquired a minority stake in Egypt-based Alexandria International Container Terminals (AICT) for an undisclosed sum.

This is the DIFC-domiciled $500 million (Dh1.8billion) private equity fund’s first deployment since its primary closing in September last year. AICT is part of the Hutchison Port Holdings’ (HPH) global network of container terminals. HPH is the leading independent port developer and operator in the world with 47 terminals in 24 countries and handling 66.3 million 20-feet equivalent unit containers in 2007.

DIC is the Dubai Government’s global investment arm. In 2006, Dubai Government-owned company DP World acquired Peninsular & Oriental Steam Navigation Company for $6.8bn to become the world’s third-largest ports operator.

“The acquisition positions the Mena Infrastructure Fund in a fast-growing industry in a rapidly emerging geography. Egypt has seen average annual cargo growth of more than 12 per cent since 1996, and Alexandria/Dekhelia is the country’s leading gateway port,” HSBC said in statement yesterday.

Fund CEO Robert Swift said: “AICT’s container terminals at the ports of Alexandria and Dekhelia completed their first phase of development in May 2007 and early growth in throughput has been strong. We see strong growth for the Egyptian economy in the future and this will drive further development of the container import and export business.

“As a specialised infrastructure fund we will work with the Alexandria Port Authority, the other shareholders and the management of AICT in the development of this economically strategic and key asset for Egypt.”

Gerry Yim, head of the Americas, Middle East and Africa at Hutchison Port Holdings, said: “As part of HPH’s global network of world-class terminals, AICT is strongly placed to benefit from continued growth in Egypt’s external trade and we look forward to working with the Mena Infrastructure Fund in successfully executing the business plan.”

The fund targets investments within the infrastructure asset class, including utilities, energy, transportation, social infrastructure and public-private partnerships. It aims to invest in projects and firms in their early stages of development, as well as being a provider of capital to companies that are in their operational or growth phases. “The fund is a long-term investor and seeks to work with the developers and operators of infrastructure and energy assets,” the statement said. DICAM, HSBC and Waha are also investors in the fund. Other investors are pension funds and financial institutions from the region and Europe.