DP World selling parts of Australian logistics business

DP World selling parts of Australian logistics business A consortium led by private equity fund Kaplan Equity Ltd. will pay about A$200 million ($159 million) to buy stakes in DP World's logistics activities in Australia.
   Under terms of the deal, DP World will retain a 25 percent shareholding in P&O Automotive and General Stevedoring (A&GS) and a 50 percent stake in P&O Trans Australia (POTA), both of which will retain their brand names. DP World will retain all of 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 alliance will enable DP World to focus on the continued development of its core container terminals business in Australia with the consortium applying its proven management expertise and strong financial backing to further develop the automotive and general stevedoring business and the landside logistics business,' DP World said in a statement.
   The proposed alliance will be managed by a number of former Patrick Corp. executives who left the Australian ports and airport operator after it was sold to Toll Holdings. Chris Corrigan, Patrick's former managing director, will be appointed non-executive chairman of A&GS and POTA, while Don Smithwick, former head of Patrick's automotive and general stevedoring business, will be named managing director of A&GS. Paul Digney will be appointed managing director of POTA. Digney was head of Patrick’s logistics division.
   'These are outstanding businesses with dedicated employees that have excellent growth potential in their own right. We expect that further strengthening the management teams and providing capital available for expansion opportunities will enable both businesses to achieve strong earnings growth for their shareholders. Customers will also benefit through seamless on- and off-wharf logistics services,' Corrigan said.
   The transaction is targeted for completion by the end of the first quarter.