DUBAI, UAE: DP World Limited and Terminal Link SA, a joint venture 51% owned by CMA CGM and 49% owned by China Merchants Port, have today reached a conditional agreement to restructure Portsynergy SAS (Port Synergy), a 50:50 joint venture company.
Port Synergy is the holding company for subsidiary companies, Générale de Manutention Portuaire SA (GMP) and Eurofos SARL (Eurofos), which operate container terminals under long-term concession agreements in Le Havre, on the north western coast of France, and in Port of Fos, close to Marseille in the south of France, respectively.
Under the terms of the restructuring, (i) DP World will consolidate Eurofos under IFRS 10 whilst maintaining a 50:50 ownership structure between DP World and Terminal Link, (ii) Terminal Link will acquire a controlling majority in the holding company of Le Havre, and (iii) DP World will sell its minority shares in Le Havre to funds advised by iCON Infrastructure LLP with a transaction enterprise value of EUR700 million on a 100% basis. This transaction is subject to completion conditions including consultation with relevant works councils of the Port Synergy group and regulatory approvals and is expected to close in 1H2022.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are pleased to announce this transaction that will enable us to consolidate our position in Eurofos (France). The Port Synergy 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.