Canadian pension fund invests $5bn in DP World assets

International port operator DP World has sold a 22% stake in the Jebel Ali Port, the Jebel Ali Free Zone and the National Industries Park to Canadian pension fund manager Caisse de dépôt et placement du Québec (CDPQ) for US$5bn.

CDPQ will invest $2.5bn through a new joint venture, with the remainder of the transaction being financed by debt. Other long-term investors will have the opportunity to acquire an additional stake of up to $3bn. The transaction implies a total enterprise value of approximately $23bn for the three assets.

The three assets will remain fully consolidated businesses within the DP World Group, and day-to-day operations, customers, service providers and employees will not be affected.

DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said in a statement that the transaction allows the company to achieve “significant strengthening” of its balance sheet. Further, he said, “we believe this new partnership will enhance our assets and allow us to capture the significant growth potential of the wider region.”

Emmanuel Jaclot, Executive VP and Head of Infrastructure at CDPQ, said the partnership between CDPQ and DP World now spans four continents and 18 terminals.