Port and Free Zone World has offered to acquire the 19.55% shares of DP World traded on Nasdaq Dubai for $2.7bn, returning DP World to private ownership. Each DP World share will be acquired at $16.75, representing a 29% premium on the market closing price of $13 on Sunday.
Port and Free Zone World will also pay $5.15bn to its parent Dubai World to help repay bank debts.
“Returning to private ownership will free DP World from the demands of the public market for short term returns which are incompatible with this industry, and enable the company to focus on implementing our mid to long term strategy to build the world’s leading logistics provider, backed by our globe-spanning network of ports, economic zones, industrial parks, feeders, and inland transportation,” said Sultan Ahmed bin Sulayem, group chairman and ceo of DP World.
Yuvraj Narayan, group chief financial, strategy and business officer of DP World, said: “DP World is focussed on the transformation of the group and takes a long-term view of investment returns and value creation. In contrast, public markets typically hold a short-term view. As a result of this gap, the DP World strategy is not fully appreciated by the equity markets, and consequently is not reflected in the company’s share price performance.”
DP World was valued at $4.96bn when it listed on Nasdaq Dubai in 2007. It was also listed on the London Stock Exchange between 2011 and 2015.
“The global ports and logistics industry has been undergoing a significant transition as a result of the consolidation of the customer base and the vertical integration of several competitors. DP World must be able to continue responding effectively to this rapidly changing landscape and to invest in the future,” bin Sulayem said.
“Our focus will continue to be on integrating our acquisitions with our global network of interconnected ports, logistics businesses and economic zones,” he added.
In recent years, DP World has made a series of acquisitions as part of its strategy to become the world’s leading end-to-end logistics provider, including Unifeeder, P&O Ferries, Continental Warehousing, and Topaz Energy & Marine.
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