DP World and the Saudi Arabia-based Hassana Investment Company (Hassana), the investment manager for the General Organisation for Social Insurance (GOSI) – which owns one of the world’s largest pension funds – recently announces an investment of approximately US$2.4 billion (SAR9.0 billion) in three of DP World’s flagship UAE assets.
Industry sources affirmed that This sale of a strategic minority stake in Jebel Ali Port, Jebel Ali Free Zone, and National Industries Park, follows the earlier transaction that successfully closed in June 2022.
Hassana will inject approximately US$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% in the three UAE assets. The investment by Hassana implies a total enterprise value of approximately US$23 billion for the three assets.
Industry sources confirmed that the three combined assets represent 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. They generated Pro-forma 2021 revenue of $1.9 billion.
The transaction closed on Dec. 19. The three assets will remain fully consolidated with DP World, with no impact on its daily operations, services providers, and employees.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “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.”
Saad bin Abdulmohsen Al-Fadly, CEO of Hassana Investment Company, said: “We are excited to announce this new partnership with DP World and our investment in Jebel Ali, a world-class infrastructure asset with a solid long-term track record. 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.”
