DUBAI global port operator DP World has announced plans to purchase the main assets of Jebel Ali's free economic zone for US$2.6 billion - and delist in London.
The company said it had agreed to purchase Economic Zones World from Port and Free Zone World, including the unit's credit facilities and debts, reports Lloyd's List.
Separately, DP World want to delist in London due to low trading volume while maintaining its main listing in Nasdaq Dubai through which 99 per cent of its shares are held and traded.
"There is no material benefit in maintaining the London listing," DP World said. "Given the low volume of trading in DP World shares on the LSE from a liquidity perspective there will be no negative impact."
DP World will hold an extraordinary general meeting on December 18 to vote on the two proposals. If they pass, the company expects to complete the acquisition in the second quarter of next year and delist in London on January 21.
"The acquisition of Economic Zones World represents a strategic and commercial opportunity that will benefit our customers as well as our company," said DP World chairman Sultan Ahmed Bin Sulayem.
"Jebel Ali Port and Free Zone support and drive the growth of Dubai and the wider region of some two billion people," he said.
"Together, we will be able to offer seamless supply chain services to shippers and shipping lines, linking sea, road and air across the port and the free zone to the new Al Maktoum Airport via the Dubai Logistics Corridor to help them further improve efficiency.
"Overall, this transaction is compelling from both a strategic and financial perspective. This will allow us to enhance our position as the leading logistics hub in the Middle East region, accelerate growth and deliver shareholder value," said Mr Bin Sulayem.
Economic Zones World is composed of Jebel Ali Free Zone, JAFZA Enterprises, EZW Corp, Business Center World, and Emerging Business Units.
PORTS
18 November 2014 - 21:42
DP World hopes to delist in London, buy Jebel Ali FEZ for US$2.6 billion
DUBAI global port operator DP World has announced plans to purchase the main assets of Jebel Ali's free economic zone for US$2.6 billion - and delist in London.
PORTS
18 November 2014 - 21:42
DP World hopes to delist in London, buy Jebel Ali FEZ for US$2.6 billion
This news 7779 hits received.
These news may also interest you