DP World unit acquires 77% stake in Feedertech
DP World-owned Unifeeder bought a 77 per cent stake in Feedertech Group of Singapore to boost its capability in the logistics sector.
The Dubai port operator did not reveal the total value of the transaction but said it is less than 1 per cent of its net asset value. The deal is expected to close in the first quarter of 2020.
“Feedertech has a strong reputation as a reliable independent feeder and regional short-sea operator and we are delighted to add this asset to our portfolio,” said Sultan bin Sulayem, group chairman and chief executive of DP World.
“Furthermore, it offers us exposure to the faster-growing coastal short-sea trade in the Indian subcontinent, which is highly complementary to our existing India logistics strategy.”
The “next and imminent stage” of this strategy will be to launch a dedicated and efficient India-Gulf region service, Mr bin Sulayem said.
Established in 2003, Feedertech operates two businesses. Feedertech is a company offering a feedering service – vessels which move containers from smaller ports to larger container terminals. Its other business Perma, meanwhile, operates short-sea networks. The group generates annual revenue of more than $100 million (Dh367.2m) and transports in excess of 600,000 TEU (twenty foot equivalent units) per year.
“Feedertech has enjoyed great success over the years and we are proud of our achievements, but we believe the transaction with Unifeeder, with the support of DP World, will allow us to take the business to the next stage of its growth,” said Ali Maghami, founder and owner of Feedertech, who will retain a 23 per cent stake.
The Unifeeder Group, which is 100 per cent owned by DP World, is an integrated logistics company with the largest feeder network in the world, and a rapidly growing short-sea business in Europe, northern Africa and the Black Sea region.