DP World has successfully completed the acquisition of Brazil’s Empresa Brasileira de Terminais Portuários (Embraport) from Odebrecht Transport, DP World Group Group Chairman and CEO Sultan Ahmed Bin Sulayem announced on Monday.
The acquisition of the additional 66.67 percent stake in Embraport brings DP World’s shareholding to 100 percent.
The terminal will now be branded as DP World Santos. It is the largest multi-modal port terminal in Brazil and is located in Latin America’s busiest container terminal, the port of Santos, which in 2016 handled 3.4 million twenty-foot equivalent units (TEU).
According to the company, DP Santos has an annual capacity of 1.2 million TEU. The first phase of the project has led to the creation of 653 metres of wharf and 207,000 square-metres of terminal area.
According to DP World, the purchase consideration is below 5 percent of its net asset value as of the first half of 2017. On a pro-forma basis, DP World’s net leverage would be 2.8x net debt to earnings before interest, taxes, depreciation and amortization (EBITDA), with the transaction compared to the reported 2.6x.
“We are delighted to fully consolidate our stake in DP World Santos and to underline our commitment to the Port of Santos and the future of trade in Brazil,” Bin Sulayem said.
“DP World has become a major player in the South American infrastructure sector with a network of container terminals in Peru, Dominican Republic, Argentina, Ecuador and Suriname and we remain committed to our role as a global trade enabler and targeting a broader strategy to grow complementary sectors in the global supply chain,” he added.
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