DP World compelled to sell Adelaide container terminal to Flinders

DUBAI global port operator DP World was compelled to sell its 60 per cent share in Adelaide's container terminal to Flinders Port after the Australian firm exercised its right to buy the stake, reports Reuters.

"This was not a negotiated transaction and the total enterprise value, in excess of US$235 million, representing 12.3 times historic earnings was determined by an independent expert valuer," said Ganesh Raj, managing director for DP World's Australian business.

"Flinders Ports have remained insistent in exercising specific provisions in a shareholders agreement to acquire DP World Australia's shareholding in the joint venture," he said in a statement.

DP World, which also operates container terminals in Brisbane, Sydney, Melbourne and Fremantle, said the stake sale was triggered by last year's agreement to sell 75 per cent of its Australian operations to private equity firm Citi Infrastructure Investors (CII) for $1.5 billion.

Flinders Port, which owned the remaining 40 per cent in the terminal, received the rights to acquire the DP World stake following that deal.