India’s National Investment and Infrastructure Fund (NIIF) is buying a minority stake in a DP World subsidiary, with the transaction amounting to INR 22.5 billion ($300 million).
The NIIF Master Fund is acquiring 22.5 percent of Hindustan Ports Private Limited, which operates five container terminals in India, managing more than 5 million twenty-foot equivalent unit (TEU) of capacity or a national market share of 20 percent.
“The broadening of our partnership with NIIF to include our flagship India ports platform is a natural extension of our existing relationship and aligns both parties to focus on delivering end-to-end supply chain solutions,” Sultan Ahmed bin Sulayem, chief executive officer of DP World, said in a statement.
The transaction marks NIIF’s single largest investment, with the partnership expected to eventually amount to $500 million, the companies said in a release. The transaction will be closed by the first quarter of 2023.
“The deepening of our successful 4-year partnership with DP World is a testament to the attractive opportunities in the Indian ports and logistics sector and the strategic vision and ongoing reforms under the PM Gati Shakti programme,” NIIF chief executive officer Sujoy Bose said.
He added: “The investment will enable NIIF’s domestic and international investors to have a meaningful exposure in the sector through a unique and scalable platform with a significant presence across sea-based container terminals and land-based container logistics infrastructure.”
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