Canaccord Genuity Acts as Financial Advisor to DP World on CDPQ’s $5 billion Investment in Strategic Assets in UAE valued at ~$23 billion
Canaccord Genuity is pleased to announce that on June 6, 2022, its client, DP World, a global infrastructure-led supply chain solutions provider, has entered into an agreement with CDPQ, a global investment group, to invest US$5 billion (CA$6.3 billion) in three of DP World’s flagship UAE assets consisting of Jebel Ali Port, the Jebel Ali Free Zone and the National Industries Park. CDPQ will invest US$2.5 billion through a new joint venture in which it will hold a stake of approximately 22%, with the remainder of the transaction being financed by debt. Other long-term investors will have the opportunity to acquire an additional stake of up to US$3 billion. The transaction implies a total enterprise value of approximately US$23 billion for the three assets.
The Jebel Ali Port, Free Zone and National Industries Park together comprise a best-in-class group of infrastructure 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 generated pro-forma 2021 revenue of US$1.9 billion.
Tranche 1 (US$5 billion) of the transaction is expected to close in the second or third quarter of 2022, and tranche 2 (up to US$3 billion) is expected to close during the fourth quarter of 2022.
DP World is the leading provider of smart logistics solutions, enabling the flow of trade across the globe with reported revenue of US$10.8bn and adjusted EBITDA of US$3.8bn for the year 2021. Group has 295 business units operating in 78 countries across 6 continents and runs the top 5 global port operations supported by 97,500 professionals.
CDPQ is a global investment group that manages funds for public pension and insurance plans and works alongside its partners to build enterprises that drive performance and progress. They are active in the major financial markets, private equity, infrastructure, real estate, and private debt. As of December 31, 2021, CDPQ’s net assets totalled CA$420 billion.
This is Canaccord Genuity Dubai team’s second marquee transaction with DP World, having acted as the exclusive financial advisor for them in February 2017 on creating a US$3.7 billion global investment platform with CDPQ. The Canaccord Genuity team included Sachin Mahajan, Arun Bakshi, Ebbad un Nabi, Saurabh Khandelwal in Dubai with ongoing support from David Kassie.