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DB World and the global investment group Case de Depo et Plasmann de Québec – CDBQ announced yesterday that they have invested $ 5 billion (equivalent to 18.4 billion dirhams or 6.3 billion Canadian dollars) in three of DBworld’s assets. »Home in the Emirates.
CDBQ will invest $ 2.5 billion (9.2 billion dirhams) in Jebel Ali Port, Jebel Ali Free Zone (Jafza) and National Industries Park through a new joint venture in which it will own a stake of approx. 22% while financing the rest of the process is debt.
Other long-term investors will have the opportunity to acquire an additional stake of up to $ 3 billion (AED 11 billion). This operation includes a total project value of approximately $ 23 billion (84.64 billion dirhams) for the three assets.
Jebel Ali Port, Jebel Ali Free Zone and National Industries Park together form a suite of advanced infrastructure with a strong long-term growth record.
Together, the three units form a world-class integrated supply chain and logistics ecosystem for more than 8,700 companies worldwide, serving more than 3.5 billion consumers globally. The three assets generated initial revenue of $ 1.9 billion (approximately 7 billion dirhams) by 2021.
Jebel Ali Port is a leading port that constitutes a major international gateway for trade and the second largest port outside Asia, as it is strategically located to serve the trade corridor between East and West by connecting it with 150 cities worldwide through more than 180 shipping companies.
Jebel Ali Free Zone (Jafza) is the largest free zone in the Middle East and one of the largest free zones in the world, as it includes international companies from 140 countries, including about 150 companies from the Fortune 500 list of companies. National Industries Complex, it covers an area of up to 21 square kilometers allocated to manufacturing and processing companies. The business of the three assets will remain fully integrated into the DB World Group, with day-to-day operations, dealers, service providers and employees unaffected.
Sultan Ahmed Bin Sulayem, Chairman and CEO of DB World Group, said: “We are pleased to announce the extension of our partnership with Case de Depo et Plasman de Québec, as our joint investment has achieved significant success thanks to our expertise and our long-term investment horizon.
We are convinced that this new partnership will improve our assets and enable us to exploit the significant growth potential of the region as a whole. The transaction will also achieve our goal of reducing DB World’s net leverage to less than 4 times the ratio of net debt to EBITDA, which has been achieved despite the challenges of the pandemic and recent global economic conditions.
He added: “The significant strengthening of our balance sheet, the continued flexibility of our business and the diversification of our portfolio, as well as the continued focus on supply chain solutions, will support our goal of achieving a strong investment assessment for the Group.” We believe that this transaction will provide a strong platform for UAE assets to achieve long-term growth targets, while a strong balance sheet supports the Group’s strategy for integrated supply chain solutions, which will deliver sustainable value to all dbworld’s stakeholders.
“The investment in Jebel Ali is an important example of the partnership between Case de Depo e Plasman de Québec and DB World, which now covers 4 continents and 18 container terminals,” said Emmanuel Jaclot, Executive Vice President and Infrastructure Officer at Case Depot. and Plasman de Québec.
We are pleased to deepen our long-term relationship with the leading operator of global logistics and supply chains by investing in strategic commercial infrastructure, which will play a key role in the development of the global economy.
DB World is well positioned to deliver innovative solutions to its customers from around the world. We welcome the opportunity to invest in a range of advanced infrastructures that give Case de Depot et Plasman de Québec the opportunity to explore new, fast-growing trade routes and markets in Africa and South Asia.
The first installment of the agreement, estimated at $ 5 billion (18.4 billion dirhams), is expected to close in the second or third quarter of 2022. While the second installment of the agreement is estimated to be worth up to $ 3 billion (11 billion dirhams) ), is expected to close during the last quarter of 2022.
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