Addleshaw Goddard has advised global infrastructure company DP World on a deal that will see US$5 billion invested in three of its flagship UAE assets.
Under a joint venture structure, Canadian investment group CDPQ will take a minority stake of DP World's Jebel Ali Port, Jebel Ali Free Zone and National Industries Park for US$5 billion, with other long-term investors having the opportunity to acquire an additional stake of up to US$3 billion. The transaction implies a total enterprise value of approximately US$23 billion for the three businesses.
The businesses will remain fully consolidated within the DP World group, and their day-to-day operations, customers, service providers and employees will not be affected. DP World and CDPQ have a history of successful partnerships since launching their global joint investment platform in 2016.
Jebel Ali Port, Jebel Ali Free Zone and National Industries Park together comprise a group of infrastructure assets with a solid long-term track record of growth. Combined, they form a world-class integrated ecosystem for the supply and logistics chains of over 8,700 companies from around the world, and generate a significant proportion of Dubai’s GDP. The three assets generated pro-forma 2021 revenue of US$1.9 billion.
The Addleshaw Goddard team, which was led by partner Ian Le Pelley, acted as co-advisers to DP World alongside Clifford Chance. The DP World legal team was led by James Pointon, with assistance from Louisa Boyack and Angela Wang.
Ian Le Pelley said: "This partnership will see the establishment of an important joint venture relating to the largest international gateway port in the Middle East and the largest free zone - assets which comprise strategic trade infrastructure and which play a pivotal role in the global economy. This investment significantly strengthens DP World's balance sheet, which will help support its wider end-to-end supply chain solution strategy. We are delighted to have been able to provide DP World with our experience and expertise on this landmark transaction."