Brazil: DP World acquires additional stake in Embraport
DP World has completed the acquisition of an additional 66.67% stake in Empresa Brasileira de Terminais Portuários (Embraport) in Brazil from Odebrecht Transport (OTP).
The transaction increases DP World’s shareholding to 100% and the terminal will be rebranded to DP World Santos. The purchase consideration is below 5% of DP World’s net asset value as of H1 2017, and on a pro-forma basis DP World’s net leverage would be 2.8x Net Debt to EBITDA with this transaction compared to the reported 2.6x.
DP World Santos is the largest Brazilian private multi-modal port terminal and operates in the Port of Santos, which is the busiest container port in Latin America handling 3.4 million twenty-foot equivalent units (TEU) in 2016 and has strategic access to sea, road, and rail, and 90% of the cargo is destined for Brazil’s most populous city, São Paulo. DP World Santos has an annual capacity of 1.2 million TEU and the first phase of the project has created 653m of wharf, 207,000sqm of terminal area.
DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem, said: “We are delighted to fully consolidate our stake in DP World Santos and to underline our commitment to the Port of Santos and the future of trade in Brazil. DP World has become a major player in the South American infrastructure sector with a network of container terminals in Peru, Dominican Republic, Argentina, Ecuador, and Suriname, and we remain committed to our role as a global trade enabler and targeting a broader strategy to grow complementary sectors in the global supply chain.”