DP World and a consortium led by Kaplan Equity Ltd intend to engage in a joint logistics alliance in Australia.
The alliance will assist in the expansion of DP World’s logistics activities in Australia – P&O Automotive & General Stevedoring (A&GS) and P&O Trans Australia (POTA).
DP World will retain a 25% shareholding in A&GS and a 50% stake in POTA. DP World will retain a 100% interest in its current landside logistic operations in Adelaide. Existing investments by DP World in associated companies are also under consideration as part of the joint venture.
The final transaction value is estimated to be around A$200 million (US$159m), and is subject to a number of conditions precedent.
Chris Corrigan, former managing director of Patrick Corp, will be appointed non-executive chairman of the A&GS and POTA businesses. Don Smithwick, former head of Patrick’s Automotive & General Stevedoring business, will be appointed managing director of A&GS. Paul Digney, former head of Patrick’s logistics division, will be appointed managing director of the POTA business.
Management of DP World and the consortium are working together to finalise all outstanding matters to enable the transaction to be completed, which is targeted for the end of the first quarter of 2007. Until completion DP World will remain in control of all the businesses; after completion, the consortium will have management responsibility.
Eyefortransport
Login
