DP World Sells Stake In Russian Firm For $230mn

Dubai port operator DP World sold its quarter stake in a Russian container terminal to Global Ports Investment for $230 million, as part of efforts to dispose of non-core assets.

Dubai Ports said on Monday its minority ownership in Vostochnaya Stevedoring Co was a legacy investment with limited management involvement.

Global Ports already holds 75 per cent of Vostochnaya and will now take full control of the terminal following the sale. The transaction is expected to close this week, the Dubai-based firm said in a statement to Nasdaq Dubai.

The Vostochnaya Stevedoring Co, based in the port of Vostochny, is the largest container terminal in the Far East of Russia and one of the key gateways for Russian container transport, Global Ports said in a separate statement.

Nikita Mishin, the chairman of Global Ports said the acquisition is part of the company’s plans to pursue further growth in Russia and CIS (Commonwealth of Independent States) countries.

The sale by DP World, one of the more profitable assets of debt-laden Dubai World, is the latest in a series of disposals of non-core assets in different countries. The firm announced sale of its operations in Belgium a month ago and also quit its venture in Yemen.

DP World has a net debt of $3.5 billion, according to its half-year earnings report released in August.

The ports operator, which makes the bulk of its money from regional operations, has been selling assets in developed markets, including the $1.5 billion sale of its Australian operations to private equity firm Citi Infrastructure Investors last year.

In July, DP said it was forced to hand over its 60 percent holding in Adelaide’s container terminal to Flinders Port after the Australian firm exercised its right to buy the stake. The company also sold its 34 per cent stake in UK-based Tilbury Container Services Ltd for $75.48 million in January.

DP World shares were up 0.5 percent by 0715 GMT on the Nasdaq Dubai bourse.