In a transaction that includes a total value of $23 billion for 3 “assets”
DB World and CDBQ invest $5 billion in the UAE
DB World and global investment group Case de Depo et Plasman de Québec (CDBQ) have announced an investment of $5 billion (CAD $6.3 billion) in three of DBworld's main assets in the UAE. .
CDPQ investments
CDBQ will invest $2.5 billion in Jebel Ali Port, Jebel Ali Free Zone, and the National Industries Park, through a new joint venture in which it will own a 22 percent stake, while the rest of the operation will be financed by debt.
Other long-term investors will have the opportunity to acquire an additional stake of up to $3 billion, which includes a total project value of about $23 billion for the three assets.
strong group
Jebel Ali Port, Jebel Ali Free Zone and the National Industries Park together constitute a group of advanced infrastructure, with a strong long-term growth record.
Together, the three entities form a world-class integrated supply chain and logistics system for more than 8,700 companies from around the world, serving more than 3.5 billion consumers globally.
The three assets generated initial revenues of $1.9 billion in 2021.
asset enhancement
Sultan Ahmed bin Sulayem, Chairman and CEO of DB World Group, said: “We are pleased to announce the expansion of our partnership with (Cas de Depo et Plasman de Québec), as the joint investment between us has achieved an important success, thanks to our expertise and long-term investment horizon. we've got.
We are confident that this new partnership will enhance our assets and allow us to tap into the significant growth potential of the region as a whole.”
He added, "The transaction will also achieve our goal of reducing DB World's net leverage to less than four times the net debt-to-earnings before interest, tax, depreciation and amortization ratio, and this was achieved despite the challenges of the pandemic and recent global economic conditions."
Bin Sulayem stressed that the significant strengthening of the balance sheet, the continued flexibility of the group's business, and the diversification of its portfolio, as well as the continued focus on supply chain solutions, will support the goal in achieving a strong investment rating for the group.
“Overall, we believe this transaction will provide a strong platform for UAE assets to achieve long-term growth goals, while a strong balance sheet supports the Group’s integrated supply chain solutions strategy, which will deliver sustainable value to all stakeholders in DB World,” he said. .
privileged position
For his part, Executive Vice President and Infrastructure Officer at Case de Depot et Plasman de Québec, Emmanuel Jaclot, said: “We are pleased to deepen our long-term relationship with the leading operator of global logistics and supply chains by investing in strategic commercial infrastructure, which will play a role pivotal in the development of the global economy.
He continued: “DB World enjoys a distinguished position in providing innovative solutions to its customers from all over the world, and we welcome this opportunity to invest in a group of advanced infrastructure that provides (Cas de Depo et Plasman de Québec) the opportunity to explore new markets and trade routes. fast-growing in Africa and South Asia.
According to the statement, the first tranche of the deal, estimated at five billion dollars, is expected to close in the second or third quarter of 2022. The second tranche of the deal, estimated to be worth up to three billion dollars, is expected to close during the last quarter of 2022.
The three assets
Jebel Ali Port is a major international trade gateway and the second largest port outside Asia. It is strategically located to serve the East-West trade corridor by connecting it to 150 cities worldwide through more than 180 shipping lines.
As for the Jebel Ali Free Zone, it is the largest free zone in the Middle East and one of the largest free zones in the world, as it includes international companies from 140 countries, including 150 companies from the "Fortune 500 companies list".
In turn, the National Industries Complex extends over an area of up to 21 square kilometers, allocated to manufacturing and processing companies.
According to dbworld's statement, the business of the three assets will remain fully integrated into the dbworld group, as daily operations, dealers, service providers and employees will not be affected.
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