Dubai port restructures its Hong Kong assets

Dubai Ports (DP) World said Thursday it divested the majority of its interests in Hong Kong-based container terminals and will continue to manage the ports through a strategic partnership with the Goodman Hong Kong Logistics Fund. Through the transactions, DP World will monetize 75 percent of its interests in CSX World Terminals Hong Kong Limited (CT3) and 100 percent of its interest in Asia Container Terminal Ltd. (ATL), which operates Asia Container Terminal 8 West (CT8), the world's third largest maritime port operator said in a statement to the bourse NASDAQ Dubai. DP World will receive 742 million U.S. dollars out of the two transactions with the total net gain amounting to approximately 151 million U.S. dollars. DP World said it will divest the 75 percent of its equity interests in CT3 and ATL, for a cash consideration of 463 million U.S. dollars, to Goodman Hong Kong Logistics Fund to form a strategic partnership in respect of these assets which the Emirati port firm will continue to manage. Mohammed Sharaf, the group chief executive of DP World, said " Goodman's experience in the logistics sector, combined with our expertise as a global port operator, will ensure that our focus is on delivering the highest level of service to our customers." Goodman is an unlisted real estate trust and invests in prime industrial assets throughout Hong Kong, according to firm's website. The deal is subject to regulatory approvals and expected to be sealed at the end of the first half of 2013. DP World will also divest all its 55.16 percent interest in Asia Container Terminals Holdings Limited, the holding company of the entity that owns and operates CT8, for a cash consideration of 279 million U. S. dollars to Hutchison Port Holdings Trust. At the NASDAQ Dubai, DP World shares were unchanged at 13.10 U. S. dollars in late trading.