DP World Inks Acquisition Deal for Chilean Port Operator

Dubai-based port and terminal operator DP World has decided to extend its global footprint with the acquisition of a Chilean port operator.

The company has signed an agreement to acquire 71.3% stake in Puertos y Logistica S.A. (Pulogsa), listed on the Santiago stock exchange, from Minera Valparaiso and other shareholders associated with the Matte Group.

DP World said that the acquisition would be effected via a tender offer to acquire all outstanding shares of the business. The company would offer USD 502 million in consideration for 100% equity ownership. As of September 30, 2018, Pulogsa had net financial debt of USD 226 million.

The acquisition is expected to be earnings accretive in the first full year of consolidation and it would be financed from existing balance sheet resources, the terminal operator explained.

The transaction is subject to relevant third party consents and is expected to close in the first half of 2019.

Pulogsa operates a long-term concession for Puerto Central (PCE) in San Antonio, in Chile’s Central Region V, and owns and operates Puerto Lirquen (PLQ) in Chile’s Southern Region VIII.

“These new assets will allow DP World to serve cargo owners and and shipping lines at five key gateways on the west coast of South America in Posorja (Ecuador), Callao and Paita (Peru) and San Antonio and Lirquen (Chile),” Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said.