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.
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, according to the announcement.
If the offer is accepted, DP World will be 100% 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 US$16.75, representing a 29% premium on the market closing price of US$13.00 on Sunday.
In recent years, DP World has made a series of acquisitions, including Unifeeder, P&O Ferries, Continental Warehousing, and Topaz Energy & Marine.
Yuvraj Narayan, Group Chief Financial, Strategy and Business Officer of DP World, said: “DP World is focused on the transformation of the Group and takes a long-term view of investment returns and value creation. DP World’s 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: “DP World must be able to continue responding effectively to this rapidly changing landscape and to invest in the future.”