The container terminals in Hong Kong are consolidating with DP World exiting the city. The Dubai port giant is selling its 55.2% stake in Asia Container Terminal, which operates Asia Container Terminal 8 West (CT8), to Hutchison Port Holdings Trust, for $279m. HPH Trust is also paying PSA China $226m to takeover the remaining stake in the terminal.

DP World is also offloading 75% of its stakes in container terminals CSX World Terminals Hong Kong Ltd and ATL Logistics Centre Hong Kong Ltd (ATL) to a unit of Australian warehouse operator Goodman Group for $463m in cash. DP World will continue to manage this terminal for Goodman.

"We believe Hong Kong will continue to be a very interesting market. However, our presence was small relative to the market," Sultan Ahmed bin Sulayem, chairman of DP World, said in a statement to the Nasdaq Dubai bourse.

"This reorganisation, forming a strategic partnership and partially monetising some assets, allows us to realise value and recycle capital into new, fast growing opportunities in other markets."

The deal "is about 40% below HPH Trust's own valuation per teu and makes good strategic sense," Barclays Capital analyst Jon Windham said in a note.

Source from Sino Ship News