DP World extends reach with purchase of Chilean company

DP World, one of the world’s biggest port operators, agreed to acquire Chile ports operator Puertos y Logistica (Pulgosa), giving it access to five regional ports as it expands its footprint in South America.

The Dubai operator will take a 71.3 per cent stake in the Santiago-listed company from Minera Valparaiso and other shareholders associated with the Matte Group, DP World said yesterday. It will offer $502 million (Dh1.84 billion) in a tender for the full ownership of the business, which has a market value of $170.1m.

Pulgosa operates a long-term concession for Puerto Central (PCE) in San Antonio in addition to owning and operating Puerto Lirquen (PLQ) in southern Chile.

“These new assets will allow DP World to serve cargo owners 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],” said Sultan bin Sulayem, DP World chairman. “The overall value proposition for these terminals is compelling.”

DP World operates several ports in South America including container terminals in Peru’s Port Callao and Brazil’s Port of Santos and Argentina’s Terminales Rio de la Plata in Buenos Aires. The expansion push in South America comes after DP World warned in October that the near-term outlook for Dubai’s Jebel Ali Port remained challenging. Its third quarter consolidated volumes for the Americas and Australia rose 17 per cent yearon-year.

DP World rose 0.06 per cent at market close yesterday on Nasdaq Dubai, where its shares are traded.

Pulogsa has net financial debt of $226m as of September 30 and the deal is expected to close in the first half of the year, DP World said.

The UAE company expects the acquisition to be “earnings accretive” in the first full year of consolidation and that it will be financed from existing balance sheet resources.

“PCE and PLQ are both ‘best in class’ terminals in their respective markets, with longterm operating rights, strong cargo diversification and significant capability for expansion,” Mr bin Sulayem said.

PCE is one of Chile’s largest container ports with a capacity of more than one million twenty-foot equivalent containers and potential for further capacity expansion.

PLQ is a multipurpose terminal that handles containers, general cargo and dry bulk. The port is positioned next to the country’s second-largest city and industrial hub Concepcion and is set to benefit from the pulp and lumber industry in southern Chile, according to DP World.

These new assets will allow DP World to serve cargo owners and shipping lines at five key gateways

SULTAN BIN SULAYEM DP World chairman