Greenfield port valuation model

Background

• FSDEA Int Holding PCC, an alternative investment vehicle of FSdeA, the sovereign wealth fund of the Republic of Angola, is the sole shareholder of CAIOPORTO SA, the concessionaire of Caio port, a greenfield port development in Cabinda, Angola;

• CAIOPORTO SA, was awarded a 30-year concession from the Ministry of Transport, to plan, design, build and manage the Port of Caio. 

Client Objectives

• FSDEA Int Holding PCC, engaged Drewry to carry out an independent valuation of CAIOPORTO SA.

Drewry Approach

• Drewry followed a five-step process which involved a review of the planned development and the main concession terms as agreed between the government of Angola and the concessionaire;
• An independent assessment of potential revenue resulting from a bottom up assessment of likely commodities and included in our analysis long term organic volume / market growth, an assessment of investment needs and phasing of CAPEX.

Results Achieved

• Forecast cash flows, Caioporto S.A., valuation - Dividend Discount Model;

• Drewry advisory team provided a range of valuation outcomes giving careful consideration to the impact of government guarantees and some potential to restructure the operating business plan.