Globally renowned multinational logistics company, DP World and Saudi Arabia-based Hassana Investment Company have announced an investment of approximately $2.4 billion (SAR9.0 billion) in three of DP World’s flagship UAE assets.
Hassana is the investment manager for the General Organization for Social Insurance (GOSI), which owns one of the world’s largest pension funds.
This sale of a strategic minority stake in Jebel Ali Port, Jebel Ali Free Zone, and National Industries Park, follows on the earlier transaction that successfully closed in June 2022.
Hassana will invest approximately $2.4 billion in a new joint venture with DP World through which it will hold its economic interest in a stake of approximately 10.2 percent in the three UAE assets. The investment by Hassana implies a total enterprise value of approximately $23 billion for the three assets.
“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 UAE assets, which have a long and sustained track record of growth and resilience. 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.”
According to the statement, “The Jebel Ali Port, Free Zone, and National Industries Park together comprise a best-in-class group of infrastructure assets, with a solid long-term track record of growth. Combined, they 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. The three assets generated pro-forma 2021 revenue of $1.9 billion.”
After this investment, 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.
Mr. Saad bin Abdulmohsen Al-Fadly, CEO of Hassana, said that, “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. Favorable 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.”