A joint venture of the Dubai-based port operator DP World and India's National Investment and Infrastructure Fund has acquired a 76% stake in multi-modal logistics platform Kribhco Infrastructure Ltd from Krishak Bharti Cooperative Ltd (Kribhco).
DP World said in a statement that the joint venture, Hindustan Infralog Pvt. Ltd, is making the acquisition through unit Continental Warehousing Corporation (Nhava Seva) Ltd.
Kribhco will retain the remaining 24% in Kribhco Infrastructure, which operates three private freight terminals in Haryana’s Pali, Uttar Pradesh’ Modinagar and Gujarat’s Hazira.
DP World didn't reveal the deal value, saying only that it is less than 1% of its net asses value for the financial year 2018.
DP World also said the acquisition would enable Hindustan Infralog to become one of India’s leading rail terminal and container train operators, as well as support its existing business and increase its market presence.
DP World chairman and chief executive officer Sultan Ahmed Bin Sulayem said the company had already made progress in building an integrated logistics platform. “We aim to continue adding scale to our offering to deliver greater efficiencies and value,” he said.
Kribhco chairman Chandra Pal Singh said the sale would help Kribhco Infrastructure deliver “long-term value for all stakeholders”.
News of the sale comes just over a year after Hindustan Infralog acquired a 90% stake in the Warburg Pincus-backed Continental Warehousing Corporation. This was the first investment by the joint venture, which had said it would invest up to $3 billion in ports, logistics and related sectors.
“As a global trade enabler, we aim to grow in complementary sectors of the global supply chain,” Sultan Ahmed Bin Sulayem had said at the time of the Continental Warehousing acquisition.
DP World was formed in 2005 after the merger of Dubai Ports Authority and Dubai Ports International. It operates 78 marine and inland terminals and has a presence in over 40 countries with more than 46,000 employees.
The Indian government had created the NIIF to catalyse capital from international and domestic investors into energy, transportation, housing, water, waste management and other infrastructure and related sectors. The fund’s strategy includes anchoring equity, quasi-equity and debt funds in partnership with investors targeting investments in relevant sectors.