Dubai port operator forced to hand over holding in Flinders Port in Adelaide as part of deal
Port operator DP World said on Wednesday it was forced to hand over its 60 percent holding in Adelaide's container terminal to Flinders Port after the Australian firm exercised its right to buy the stake.
The stake sale was triggered by a transaction entered by the state-owned Dubai firm last year to sell 75 percent of its Australian operations to private equity firm Citi Infrastructure Investors (CII) for $1.5bn.
Flinders, which owned the remaining 40 percent in the terminal, received the rights to acquire the DP World stake following that deal.
"Flinders Ports have remained insistent in exercising specific provisions in a shareholders agreement to acquire DP World Australia's shareholding in the joint venture," Ganesh Raj, managing director for DP World's Australian business said.
"This was not a negotiated transaction and the total enterprise value, in excess of $235 million, representing 12.3 times historic earnings was determined by an independent expert valuer," he said in a statement.
DP World Australia also operates container terminals in Brisbane, Sydney, Melbourne and Fremantle.
It would be better to state the facts, and that is the firm exercised their rights to buy the 40%.
When DP World sold 75 percent of its Australian operations to private equity firm Citi Infrastructure Investors (CII) for $1.5bn this was part of the terms and conditions.
Clear contractual outcome, without force.