DP World agrees to acquire Chilean ports operator

14 January 2019
DP World will offer $502m for 100 per cent equity of the firm that operates and owns terminals in central and southern Chile

Dubai-based ports operator DP World is acquiring Chile’s Puertos y Logistica (Pulogsa), which operates Puerto Centrale, a multipurpose terminal in San Antonio, close to the capital Santiago, and owns and operates another terminal, Puerto Lirquen, in Chile’s southern region.

DP World said it has entered into an agreement to acquire 71.3 per cent stake in Pulogsa from Minera Valparaiso and other shareholders associated with Chile's Matte Group.

Pulogsa is listed on the Santiago stock exchange, and the acquisition will be made with an offer to acquire all outstanding shares of the business. DP World said it plans to offer $502m in consideration for a 100 per cent equity ownership.

The firm said Pulogsa had net financial debt of $226m as of September 2018.

The acquisition is expected to be earnings accretive in the first full year of consolidation and will be financed by existing balance sheet resources.

The transaction is subject to relevant third party consents and expected to close in the first half of 2019. Canada’s Scotiabank is acting as exclusive financial adviser to DP World.

Puerto Central (PCE) is one of Chile’s major container ports, with over 1 million twenty-foot equivalent (TEU) capacity. Recent infrastructure investments at the port has also made it the most modern terminal in the country, offering potential for further capacity expansion for both container and non-container operations, according to DP World.

Puerto Lirquen (PLQ), on the other hand, is a multipurpose terminal incorporating long-term maritime concessions with freehold land ownership, which handles containers, break-bulk and dry bulk. The port is located close to the pulp and lumber industry in southern Chile, next to the country’s second largest city and industrial hub, Concepcion.

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