Dubai: DP World and its wholly owned subsidiary, DP World FZE have entered into an agreement in relation to the proposed acquisition of Economic Zones World FZE (EZW), its subsidiaries and subsidiary undertakings from Port and Free Zone World FZE (PFZW) for a total cash consideration of $2.6bn.
EZW is a provider of industrial and logistics infrastructure, which comprises five business units: Jebel Ali Free Zone FZE (JAFZ), JAFZA Enterprises FZE, EZW Corporate, Business Center World FZE, and Emerging Business Units. JAFZ, EZW’s primary business unit representing 97% of revenue and operating profit for last year, is a 57 sq km modern commercial and industrial logistics park adjacent to DP World’s flagship Jebel Ali port in Dubai. The free zone is an integral component of the supply chain for DP World’s customers at the Jebel Ali port.
In addition, DP World is separately seeking approval from its shareholders to delist DP World’s shares from the London Stock Exchange (LSE). DP World will maintain its NASDAQ Dubai listing.
The terminal operator said the Dubai listing is “a sound base” for DP World’s international shareholder base and that there is no material benefit in maintaining the London listing. The shares will continue to be traded on NASDAQ Dubai and, given the low volume of trading in DP World’s shares on the LSE, the directors believe that from a liquidity perspective there will be no negative impact. [13/11/14]