One of the ‘big two’ port operators, DP World, has raised $1.5 billion by selling 75% of the ownership of its ports operation. The stake has been sold to Citi Infrastructure Investors, a subsidiary of Citigroup.
DP World has said the funds raised by the sale will be used to reduce debt and focus on more profitable markets.
DP World runs five ports around Australia which originally formed the P&O ports business until a global takeover six years ago. The company says it will continue to invest in and manage the freight terminals and expect regulatory approval for the transaction by the end of the first quarter of 2011.
“The Australian assets are great, but it could be a good time to monetise it because we don’t know whether the recent strong performance is sustainable,” said Redwan Ahmed, a consultant quoted by Bloomberg when the sale was announced.
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