Dubai's DP World to return to full state ownership

February 17, 2020 14:51
DP World is delisting to free it from ‘the demands of the public market for short-term returns,’ Chairman Sultan Ahmed bin Sulayem said. File photo: Bloomberg

Dubai’s DP World, one of the world’s largest port operators, said on Monday that it will delist and return to full state ownership in a deal valuing the company at US$13.9 billion, Reuters reports.

Parent company Port and Free Zone World, a wholly-owned subsidiary of state investment vehicle Dubai World, will acquire the 19.55 percent of DP World’s shares listed on the Nasdaq Dubai.

Each listed share will be acquired for US$16.75, a 28.8 percent premium on Sunday’s closing price of US$13 a share, the report said, citing a regulatory filing.

Port and Free Zone World already owns 80.45 percent of ordinary share capital of DP World.

DP World is delisting to focus on its medium-to-long-term strategy and free it from “the demands of the public market for short-term returns which are incompatible with this industry,” Chairman Sultan Ahmed bin Sulayem said.

DP World, which listed on the Nasdaq Dubai in 2007, has diversified its operations in recent years beyond port facilities to include industrial parks and inland transportation.

The port operator was valued at US$4.96 billion when it listed in 2007. It was also listed on the London Stock Exchange between 2011 and 2015.

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