DP World closes overseas ports stake sale

25 January 2017

Port operator created investment vehicle with Canadian pension fund

Dubai-based DP World has finalised the sale of a 45 per cent stake in Canada’s Vancouver and Prince Rupert ports to Caisse de Depot et Placement du Quebec (CDPQ).

The sale is valued at CAD$869m ($655m), according to DP World.

The transaction will seed the recently formed $3.7bn investment vehicle between DP World and CDPQ, a pension fund.

DP World maintains a 55 per cent shareholding in the investment fund, with CPDQ accounting for the remainder.

The fund is envisaged to invest in ports and terminals in investment- grade countries, excluding the UAE, with a focus on existing assets. Only up to 25 per cent of the funds will be allocated in green field or new projects.

As with the two Canadian ports, CPDQ will have the option to co-invest alongside DP World.

DP World has explored investments in Taiwan, Kazakhstan, India, Russia and China in 2016, despite weak international trade volumes.

It has also undertaken new projects in Azerbaijan, Ecuador and another port in New Brunswick, Canada.

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