DP World acquires majority stake in Chilean port operator

Dubai-based DP World said on Sunday it had agreed to acquire a 71.3% stake in Chile’s Puertos y Logistica (Pulogsa) from Minera Valparaiso and other shareholders associated with the Matte Group.

Puertos y Logistica (Pulogsa) operates a long-term concession for Puerto Central in San Antonio, in the Central region, and owns and operates Puerto Lirquen in Chile’s south. Puerto Central is a multipurpose terminal with capacity to handle post-Panamax ships with a 15-metre draught.

 Puerto Lirquen is a multipurpose terminal, located in Concepcion Bay, in the VIIIth Bio Bio region which is the main consumption and production hub for the agricultural, forestry and salmon industries in the country. The terminal has two finger piers with six docking sites, 148,000 sqm of warehouses and more than 330,000 sqm of paved yards for storage.

The agreement is dependent on a tender to acquire all outstanding shares of Pulgosa listed at the Santiago stock exchange and Dubai’s DP World said it would offer $502m for 100% equity ownership.

“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). PCE and PLQ are both ‘best in class’ terminals in their respective markets, with long-term operating rights, strong cargo diversification and significant capability for expansion, “ said DP World group chairman and ceo Sultan Ahmed Bin Sulayem.

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“The overall value proposition for these terminals is compelling and the addition of capacity to our portfolio will help drive long-term value to all our stakeholders.”

DP World, one of the world’s largest port operators, said that Pulogsa had net financial debt of $226m as of 30 September and that the transaction was expected to close in the first half of the year and would be financed from existing balance resources.

The Matte Group is one of the most major Chilean industrial conglomerates with interests in banking, transport, telecommunication, plastics and agricultural sectors. 

Posted 14 January 2019

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Michele Labrut

Americas Correspondent, Seatrade Maritime News

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