Dubai-based port operator DP World, through its fully-owned subsidiary Unifeeder, has acquired a 77 percent stake in Singapore-based Feedertech Group, according to local media reports.
DP World’s deal to acquire Feedertech will be completed in the first quarter of 2020. The acquisition is a part of DP World’s vision to build end-to-end logistics capability to serve the needs of shipping lines and cargo owners.
Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World told the media, “The acquisition of a stake in the Feedertech Group is another strategic step in our vision to build an end-to-end logistics capability and offer an integrated service suite that also engages end-customers and traders while optimising operations.”
He added, “Furthermore, the acquisition offers us exposure to the fast-growing coastal shortsea trade in the Indian subcontinent, which is highly complementary to our existing India logistics strategy. The next and imminent stage of this development will be to launch a dedicated and efficient India-Gulf region service, which is an important route for our customers.”
Established in 2003, Feedertech group calls at 50 ports globally and generates combined revenue of around $200 million from a diverse customer mix and transporting more than 600,000 TEUs annually.
Recently, DP World received a ‘no-objection certificate’ from the Indian government to develop a container terminal park at a cost of INR1,000 crore in a Special Economic Zone.
Last month, DP World listed two sukuks of $1 billion and $500 million and two conventional bonds of $500 million and $300 million on Nasdaq Dubai. According to media reports, DP World will use the capital raised for debt refinancing and to fund growth opportunities.