Hassana invests US$2.4B in DP World assets

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Hassana invests US$2.4B in
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World (right) and Hassana CEO Saad bin Abdulmohsen al-Fadly sign the documents for the purchase of a strategic minority stake in Jebel Ali Port and two other DP World assets at DP World's headquarters in Dubai, UAE on December 21, 2022. Photo from DP World
  • US$2.4B investment is the second tranche of DP World’s sale of a strategic minority stake in three UAE assets after the US$5 billion transaction closed earlier this year
  • Hassana, investment manager of Saudi Arabia’s General Organisation for Social Insurance (GOSI) pension fund, is taking a total of 10.2% stake in Jebel Ali Port, Jebel Ali Free Zone and National Industries Park
  • The three best-in-class group of UAE infrastructure assets form a world-class integrated ecosystem for the supply and logistics chains of over 9,000 companies from around the world that generated pro-forma 2021 revenue of US$1.9 billion

Hassana Investment Co., the investment manager of the General Organisation for Social Insurance (GOSI) that owns one of the world’s largest pension funds, has invested US$2.4 billion (SAR9 billion) for a strategic minority stake in three of DP World’s flagship UAE assets, the two companies announced on December 21.

This sale of the strategic minority stake in Jebel Ali Port, Jebel Ali Free Zone and National Industries Park follows an earlier $5 billion transaction that successfully closed in June 2022, a DP World press release said.

Under the transaction, Hassana invested $2.4 billion in a new joint venture with DP World through which it will hold its economic interest in the estimated 10.2% stake in the three UAE assets.

Hassana’s investment implies a total enterprise value of about $23 billion for the three assets, according to the press release.

Jebel Ali Port, Free Zone and National Industries Park together comprise a best-in-class group of infrastructure assets with a solid long-term growth track record. Together, these assets form a world-class integrated ecosystem for the supply and logistics chains of over 9,000 companies from around the world serving more than 3.5 billion people globally, DP World said.

The three assets generated pro-forma revenue of $1.9 billion in 2021.

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After this investment, which closed on December 19, 2022, the three assets will remain fully consolidated businesses within the DP World Group, and their day-to-day operations, customers, service providers and employees will not be affected.

“We are delighted to announce this new partnership with Saudi Arabia-based Hassana, which manages one of the largest global pension funds. Hassana shares our long-term vision for the UAE assets, which have a long and sustained track record of growth and resilience,” said Sultan Ahmed bin Sulayem, group chairman and CEO of DP World.

“We believe this new partnership will serve to enhance our assets and allow us to capture the significant growth potential of the wider market. The transaction further strengthens our balance sheet, which, combined with the continued resilience of our business, diversity in our portfolio and focus on supply chain solutions, will support our target of achieving a strong investment-grade rating for the DP World group. Overall, we believe this partnership and transaction will drive sustainable value for all DP World stakeholders.”

Hassana CEO Saad bin Abdulmohsen al-Fadly, announcing the new partnership with DP World and his company’s investment in Jebel Ali, said: “We are excited to announce this new partnership with DP World and our investment in Jebel Ali, a world-class infrastructure asset with a solid long-term track record. This partnership highlights our focus and strategy to invest in critical infrastructure assets in the region that we believe will deliver long-term sustainable returns.

“Favourable demographics and macro-economic drivers and investment in transformational projects will continue to support growth momentum regionally, while trade between the emerging economies of Asia and Africa is also expected to thrive.”