DP World acquires leading ports in Chile
DP World today announced that it entered into an agreement to acquire 71.3% stake in Puertos y Logistica S.A. (Pulogsa) from Minera Valparaiso and other shareholders associated with the Matte Group.
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. Under the tender process, DP World will offer US$502 mn in consideration for 100% equity ownership. As of 30th September 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.
Pulogsa operates a long-term concession for Puerto Central (PCE) in San Antonio, in Chile’s Central Region V as well as owning and operating Puerto Lirquen (PLQ) in Chile’s Southern Region VIII.
PCE is a multipurpose terminal located in San Antonio, which is a gateway to the Chilean capital Santiago and to leading industrial, commercial and agricultural businesses. PCE is one of the country's largest container ports (over 1MN TEU capacity) with recent infrastructure investments, making it the most modern terminal in Chile.
PCE has the potential for further capacity expansion for both container and non-container operations.
PLQ is a multipurpose terminal incorporating long term maritime concessions with freehold land ownership, which handles containers, break-bulk and dry bulk.
The port is strategically positioned to benefit from the well-established pulp and lumber industry in Southern Chile, next to the country’s second largest city and industrial hub Concepción.
Commenting on the acquisition, DP World Group Chairman and CEO Sultan Ahmed bin Sulayem, said, "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. 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 in Posorja (Ecuador), Callao and Paita (Peru) and San Antonio and Lirquen (Chile).
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."
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