Flinders Ports plays hardball over Adelaide acquisition
A statement from DP World indicates that it was a reluctant seller of its 60% stake in the Adelaide Container Terminal, which has just changed hands for over $235m.
Flinders Ports, which already owned 40% of the Adelaide Container Terminal via a 2009 deal, had hailed its acquisition of the balance from its joint venture partner in a statement released on Monday.
“We are delighted with the acquisition as it now provides a seamless operation across the port and allows for integrated infrastructure planning," said Vincent Tremaine, chief executive, Flinders Port Holdings.
A more downbeat statement on Tuesday from DP World’s managing director Ganesh Raj, indicates that the company was a “forced seller” with the sale triggered by the terms of a 2010 deal that saw DP World sell 75% of its Australian operations to Citi Infrastructure Investors for $1.5bn.
The statement read: “Despite various efforts over the last 18 months by DP World Australia to find common ground on meeting Flinders Ports’ expectations of the Joint Venture, Flinders Ports have remained insistent in exercising specific provisions in a Shareholders Agreement to acquire DPWA’s shareholding in the Joint Venture.
“Flinders Ports’ exercise of rights has resulted in DP World Australia becoming a forced seller and losing its current Port Adelaide presence.
“This was not a negotiated transaction and the total enterprise value, in excess of $235 million, representing 12.3 times historic earnings was determined by an independent expert valuer.”