DP World has announced delisting plans from Nasdaq Dubai following its parent company’s proposal to acquire 19.55 percent of its listed shares. The DP World shares that are part of the delisting plan and are traded on the exchange will be acquired for $16.75 a share. Port and Free Zone World is the parent company of DP World.
DP World will be fully owned by Port and Free Zone World upon completion of the deal. Port and Free Zone World is a wholly-owned unit of Dubai World.
DP World is delisting to shift focus on its long-term strategy of becoming the leading logistics provider globally. Port and Free Zone World already holds 80.55 percent of DP World’s share capital. It will pay the port operator $5.15 billion to clear any outstanding debt to lenders.
It is reported that Port and Free Zone World will finance the transaction with the help of Citibank and Deutsche Bank. The two banks have played a significant role in advising Port and Free Zone on the deal.
DP World operates 48 marine terminals and 13 port developments in over 30 countries. It is headquartered in Jebel Ali Port in Dubai.
Yuvraj Narayan, group chief financial, strategy and business officer of DP World, said in a statement, “Delisting from Nasdaq Dubai is in the best interest of the company, enabling it to execute its medium to long-term strategy … 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.”