DP World Offers $502 Million to Buy Chile Ports Operator Pulogsa

DP world
A straddle carrier moves shipping containers around the dockside at the container terminal operated by DP World Ltd., at the Port of Southampton, in Southampton, U.K., on Wednesday, Nov. 2, 2016. Export optimism in the U.K. has risen to the highest in two-and-a-half years thanks to the pound's depreciation since the Brexit vote, according to the Confederation of British Industry. Photographer: Simon Dawson/Bloomberg

DP World Ltd. plans to offer $502 million to acquire Chile ports company Puertos y Logistica as the Dubai-based ports operator expands in Latin America.

DP World entered into an agreement to acquire 71.3 percent of Pulogsa, as the Santiago-based company is known, from Minera Valparaiso and shareholders associated with the Matte Group, the company said. The acquisition will be made via a tender offer to acquire all outstanding shares in Pulogsa.

Pulogsa operates the Puerto Central port in San Antanio and Puerto Lirquen port in southern Chile. It is listed on the Santiago stock exchange and has a market value of about $170 million.

“These new assets will allow DP World to serve cargo owners and shipping lines at five key gateways on the west coast of South America in Posorja (Ecuador), Callao and Paita (Peru) and San Antonio and Lirquen (Chile),” DP World Chief Executive Officer Sultan Ahmed Bin Sulayem said. “The overall value proposition for these terminals is compelling and the addition of capacity to our portfolio will help drive long-term value to all our stakeholders.”

Scotiabank is acting as financial adviser to DP World.