Saudi Arabia-based Hassana Investment Company, on behalf of the Saudi Arabian pension and social insurance organization, General Organization of Social Insurance, will invest approximately US$2.4 billion in a new joint venture with DP World, through which it will hold a stake of approximately 10.2% in Jebel Ali Port, Jebel Ali Free Zone, and the National Industries Park.The investment by Hassana implies a total enterprise value of approximately US$23 billion for the three flagship assets.
This investment is the second tranche of the sale by DP World, a global infrastructure-led supply chain solutions provider, of a strategic minority stake in these three UAE assets, following the first tranche US$5 billion investment which successfully closed in June 2022.
Jebel Ali Port, Jebel Ali Free Zone and National Industries Park together comprise a best-in-class group of infrastructure assets, 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 will remain fully consolidated businesses within the DP World Group, and their day-to-day operations, customers, service providers and employees will not be affected.
The Addleshaw Goddard team, which was led by partner Ian Le Pelley, acted as co-advisers to DP World alongside Clifford Chance. The DP World legal team was led by James Pointon, with assistance from Angela Wang.
Ian Le Pelley said: "It was a real pleasure advising DP World on this complex second tranche investment in three of their key UAE assets. Jebel Ali Port is the largest international gateway port in the Middle East, and Jebel Ali Free Zone is the largest free zone, and these critical infrastructure assets play an important role in the global economy. This partnership will serve to enhance DP World's assets and allow DP World to capture the significant growth potential of the wider market. In addition, the investment will further strengthen DP World's balance sheet and support its target of achieving a strong investment-grade rating for the DP World group."