The sum includes HK$750m (US$97m) in cash to pay the existing indebtedness of ACT, giving HPH Trust a debt-free purchase. ACT Holdings will become became a wholly-owned subsidiary of HPH Trust giving it the opportunity to increase the handling capacity of its other container terminals in Hong Kong.
At the same time, DP World announced that it is selling its 75% interest in CSX World Terminals Hong Kong Limited which operates berth 3 of the Kwai Chung Container Terminal (CT3) and the ATL Logistics Centre (ATL) located alongside CT3, for US$463m to the Goodman Hong Kong Logistics Fund. The plan is to form a strategic partnership, a part of which will see DP World “continuing to manage port operations.” Completion, subject to regulatory approvals, is expected towards the end of the first half of 2013.
As at 31 December 2012 the value of the assets disposed of was US$653m and they contributed a total of US$39m to DP World’s gross profit.
Sultan Ahmed bin Sulayem, Chairman of DP World said: “We believe Hong Kong will continue to be a very interesting market; however our presence was small relative to the market. This reorganisation, forming a strategic partnership and partially monetising some assets allows us to realise value and recycle capital into new, fast growing opportunities in other markets.”
When contacted by CM, a PSA corporate spokesperson stated that although PSA is not issuing a press release, “PSA International confirms it has divested its shares in Asia Container Terminal in Hong Kong to Hutchison Port Holdings Trust.”