Saudi Arabia-based Hassana Investment Company has signed a deal to invest $2.4bn in DP World’s three flagship UAE assets in return for minority stake.
Hassana is the investment manager of Saudi Arabia’s government agency General Organisation for Social Insurance (GOSI).
Hassana’s investment, which completed on 19 December, represents an enterprise value of $23bn for the three assets.
The company will make its investment via a joint venture (JV) with Dubai-based DP World.
This JV will take nearly 10.2% stakes in three UAE assets, including Jebel Ali Port, Jebel Ali Free Zone and National Industries Park.
All the assets together form an integrated ecosystem that can support the logistics and supply chains of more than 9,000 companies across the globe.
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The pro-forma revenue generated by Jebel Ali Port, Free Zone and National Industries Park stood at $1.9bn in 2021.
DP World CEO and group chairman Sultan Ahmed Bin Sulayem said: “The transaction further strengthens our balance sheet, which, combined with continued resilience of our business, diversity in our portfolio and focus on supply chain solutions, will support our target of achieving strong investment-grade rating for DP World.”
This the second tranche of sale after the divestment of strategic minority stakes in DP World’s UAE assets for $5bn that was closed earlier in June.
The latest deal will not impact routine operations, customers, service providers and employees of three assets as they will continue to remain consolidated businesses under DP World.
Hassana CEO Saad bin Abdulmohsen Al-Fadly said: “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.”