Canada fund invests $5b in DP World’s Dubai assets

Canada fund invests $5b in DP World’s Dubai assets

CDPQ, Canada’s largest pension, will invest $2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone, and the National Industries Park through a new joint venture in which it will hold a stake of approximately 22 per cent

The transaction implies a total enterprise value of approximately $23 billion for the three assets, DP World and CDPQ said in a joint statement. — Supplied photo

Published: Mon 6 Jun 2022, 5:41 PM

International port operator DP World and CDPQ, a global institutional investor, announced on Monday an investment of $5 billion in three of DP World’s flagship UAE assets.

CDPQ, Canada’s largest pension, will invest $2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone, and the National Industries Park through a new joint venture in which it will hold a stake of approximately 22 per cent, with the remainder of the transaction being financed by debt. Other long-term investors will have the opportunity to acquire an additional stake of up to $3 billion.

The transaction implies a total enterprise value of approximately $23 billion for the three assets, DP World and CDPQ said in a joint statement.

Tranche 1 ($5 billion) of the transaction is expected to close in the second