DP World to Delist from Nasdaq Dubai17 February 2020
Return to private ownership to help deliver aspiration of becoming world’s leading end-to-end logistics provider
DUBAI, 17th February 2020: DP World’s parent company Port and Free Zone World has offered to acquire the 19.55 per cent of DP World’s shares traded on Nasdaq Dubai, returning the company to private ownership.
The move will enable DP World to focus on its medium-to-long-term strategy of transforming from a global port operator to an infrastructure-led end-to-end logistics provider. Upon successful buyback, DP World will be 100 per cent owned by Port and Free Zone World, which in turn is a wholly-owned subsidiary of Dubai World.
The Board of Directors of Port and Free Zone World and the Independent Directors of DP World have reached agreement on a cash offer for the shares, which the Independent Directors deem to be fair and reasonable. Each DP World share will be acquired at $16.75, representing a 29 per cent premium on the market closing price of $13.00 on Sunday.
DP World remains financially strong, with a healthy balance sheet and a consistent track record of delivering profitability. In recent years, the company 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.
Yuvraj Narayan, Group Chief Financial, Strategy and Business Officer of DP World, said: “The DP World Board has concluded that the disadvantages of maintaining a public listing outweigh the benefits. Delisting from Nasdaq Dubai is in the best interest of the company, enabling it to execute its medium to long-term strategy. 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.”
Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer of DP World, said, “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.
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.
Our focus will continue to be on integrating our acquisitions with our global network of interconnected ports, logistics businesses and economic zones. DP World’s world-spanning footprint puts us in a strong position to lead the disruption of the industry creating a better future for all cargo owners through smarter trade.”
For DP World media enquiries please contact:
Roland Buerk, Global Head of Media Relations
Tel: +971 50 628 7856
Daniel van Otterdijk, Chief Communications Officer
Tel: +971 56 994 5501
About DP World:
We are the leading provider of smart logistics solutions, enabling the flow of trade across the globe. Our comprehensive range of products and services covers every link of the integrated supply chain – from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions.
We deliver these services through an interconnected global network of 127 business units in 51 countries across six continents, with a significant presence both in high-growth and mature markets. Wherever we operate, we integrate sustainability and responsible corporate citizenship into our activities, striving for a positive contribution to the economies and communities where we live and work.
Our dedicated, diverse and professional team of more than 56,000 employees from 134 countries are committed to delivering unrivalled value to our customers and partners. We do this by focussing on mutually beneficial relationships – with governments, shippers, traders, and other stakeholders along the global supply chain – relationships built on a foundation of mutual trust and enduring partnership.
We think ahead, anticipate change and deploy industry-leading technology to create the smartest, most efficient and innovative trade solutions, while ensuring a positive and sustainable impact on economies, societies and our planet.