The founding shareholders of Red Sea Gateway Terminal Limited (RSGT) have officially completed their 40% RSGT equity sale to the Public Investment Fund (PIF) and COSCO Shipping Ports Limited (CSPL), after the completion of the necessary conditions and regulatory approvals.
The transactions imply an enterprise value for RSGT of US$880 million and a total gross inflow of equity value for the founding shareholders US$280 million. The founding shareholders will reduce their combined shareholding to 60%, with PIF and COSCO holding 20% each.
RSGT will remain an independent terminal operator, focused on servicing its existing and future customers in the global logistics chain, according to the initial announcement that was made in late January.
“Working closely with PIF and CSPL, we will accelerate our shared vision, further strengthen our customer offering, and elevate our mandate to meet the increasing demand for terminal and logistics services,” commented Jens O. Floe, CEO of RSGT. “RSGT will continue to focus on developing a niche emerging market operator with a keen focus on ports in the Red Sea and East Africa.”
Having commenced operation in 2009, RSGT is located at the Jeddah Islamic Port, a major logistics hub serving as a global trade nexus linking Asia, Europe, and Africa, as well as an increasingly important regional business center.
RSGT assumed the operations of the North Container Terminal in Jeddah Islamic Port and has significantly expanded its handling capacity from 2.5 million TEU to 5.2 million TEU.
