Dubai-headquartered port operator DP World has reached an agreement with Terminal Link to restructure its interest in Portsynergy joint venture, the holding company for subsidiaries Generale de Manutention Portuaire and Eurofos, which operate container terminals under long-term concession agreements in Le Havre and the Port of Fos, close to Marseille, respectively.
Under the deal, DP World will consolidate Eurofos and maintain a 50:50 ownership with Terminal Link, while Terminal Link, a joint venture, 51% owned by CMA CGM and 49% owned by China Merchants Port, will acquire a controlling majority in Le Havre and DP World will sell its minority shares in Le Havre to funds advised by iCON Infrastructure with a transaction enterprise value of €700m ($771.8m). The sale is expected to close in the second half of the year.
“The Portsynergy joint venture with Terminal Link has been successful, but this restructuring will further optimise the shareholding structure and will allow both DP World and Terminal Link to take IFRS10 control of assets where we add greater value respectively. The Eurofos terminal is important to DP World’s long-term strategy as a leading Mediterranean port and we are excited to focus on unlocking the substantial growth prospects of Fos, which will add significant value for all our stakeholders,” chairman and chief executive Ahmed Bin Sulayem said.