DP World and CDPQ announce USD5 billion investment in strategic assets in the UAE
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A cross-border team of A&O lawyers has advised global investment group CDPQ on an investment of USD5 billion in three of global infrastructure-led supply chain solutions provider DP World’s flagship UAE assets.
CDPQ will invest USD2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone and the National Industries Park through a new joint venture in which it will hold a stake of approximately 22%, with the remainder of the transaction financed by debt. Other long-term investors will have the opportunity to acquire an additional stake of up to USD3 billion. The transaction implies a total enterprise value of approximately USD23 billion for the three assets.
The Jebel Ali Port, Free Zone and National Industries Park together comprise a best-in-class group of infrastructure with a solid long-term track record of growth. Combined, they form a world-class integrated ecosystem for the supply and logistics chains of over 8,700 companies from around the world, serving more than 3.5 billion people globally. The three assets generated pro-forma 2021 revenue of USD1.9 billion.
The A&O team was led by partners Richard Evans in London and David Foster in Dubai, with counsel Harsha Kumar in London and senior associate Rushal Noor and associate Grace Hunt in Dubai. London partner Jocelyn Land led the team acting on debt financing aspects. Richard Evans comments: “This significant transaction further deepens the existing partnership between CDPQ and DP World and positions CDPQ extremely well to maximise future opportunities in fast-growing markets. We are delighted to have assisted CDPQ on this latest investment.”
David Foster adds: “This transaction hits the sweet spot of our advisory offering, helping clients to navigate and execute complex, cross-border transactions with local expertise and insight wherever in the world they need it. A deal of this size and scale is a great demonstration of Dubai’s ability to create, develop and monetise world-class assets and a validation of the long-term investment we have made in our team in the region.”
Tranche 1 (USD 5 billion) of the transaction is expected to close in the second or third quarter of 2022, and tranche 2 (up to USD3 billion) is expected to close during the fourth quarter of 2022.
This significant transaction further deepens the existing partnership between CDPQ and DP World and positions CDPQ extremely well to maximise future opportunities in fast-growing markets. We are delighted to have assisted CDPQ on this latest investment.