DP World said Tuesday that it has reached a deal with partners to restructure joint venture Portsynergy SAS, including the consolidation of Portsynergy subsidiary Eurofos SARL, and the sale of DP’s stake in operations in Le Havre.

The Dubai-based supply-chain solutions company said it reached the agreement with Terminal Link SAS to restructure the 50:50 venture, the holding company for subsidiaries Generale de Manutention Portuaire SA and Eurofos. The subsidiaries operate container terminals under long-term concession agreements in Le Havre and Port of Fos, both in France.

Terminal Link itself is a joint venture, 51% owned by CMA CGM and 49% owned by China Merchants Port Holdings Co.

Under the deal, DP will consolidate Eurofos while maintaining a 50:50 ownership with Terminal Link; Terminal Link will acquire a controlling majority in Le Havre; and DP will sell its minority shares in Le Havre with a transaction enterprise value of 700 million euros ($771.2 million).

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 optimize the shareholding structure and will allow both DP World and Terminal Link to take IFRS10 control of assets where we add greater value respectively,” Chairman and Chief Executive Ahmed Bin Sulayem said.
Source: Dow Jones