DP World delists from Nasdaq Dubai to fit acquisitions into network
DP WORLD is preparing to delist from Nasdaq Dubai as its parent Port and Free Zone World fails to reap the advantages of a public listing
DP WORLD is preparing to delist from Nasdaq Dubai as its parent Port and Free Zone World fails to reap the advantages of a public listing.
Port and Free Zone World has offered to acquire the 19.55 per cent shares of DP World traded on Nasdaq Dubai for US$2.7 billion, returning DP World to private ownership. Each DP World share will be acquired at $16.75, representing a 29 per cent premium on the market closing price of $13 on Sunday.
Port and Free Zone World will also pay $5.15 billion 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 DP World CEO Sultan Ahmed bin Sulayem.
Group chief financial officer Yuvraj Narayan 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 $4.96 billion 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,' Mr 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.