DP World to delist from Nasdaq Dubai

DP World to delist from Nasdaq Dubai

Dubai-based port operator DP World will delist from Nasdaq Dubai and return to private ownership as part of its long-term development strategy.

DP World believes the move will enable the company 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.

DP World’s parent company, Port and Free Zone World, has offered to acquire the 19.55% of DP World’s shares traded on Nasdaq Dubai, returning the company to private ownership. Following the completion of the deal, DP World will be 100% owned by Port and Free Zone World.

“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,” said Yuvraj Narayan, chief financial, strategy and business officer of DP World.

Sultan Ahmed bin Sulayem, DP World’s group chairman and CEO, said that the global ports and logistics industry has been undergoing a significant transition and 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 with are incompatible with this industry, and enable the company to focus on implementing out long-to-mid-term strategy to build the world’s leading logistics provider,” the DP World boss said.

 

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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