UAE global port giant DP World expands operations at home for 405 million dollars

Source: Xinhua| 2017-09-18 21:18:49|Editor: liuxin
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DUBAI, Sept. 18 (Xinhua) -- Dubai Ports (DP) World, the third biggest container port operator in the world, said here Monday it has entered into agreements to acquire Maritime World, the 100 percent owner of Dubai Maritime City (DMC), for a purchase consideration of 180 million dollars and to buy 100 percent of Drydocks World by means of a capital injection of 225 million dollars.

The two takeovers took the total cash required for the acquisitions of DMC and Drydocks to 405 million dollars, said DP World whose shares are traded on the Nasdaq Dubai, the international exchange of the United Arab Emirates (UAE).

DMC is adjacent to DP World's Port Rashid. It is a maritime focused commercial and industrial park, which extends to 2.3 million square meters on a man-made peninsula and provides additional land as an alternative to the highly-occupied Jebel Ali Free Zone where DP World runs its headquarters.

Drydocks World is a market leader in the ship repair business with the largest ship repair yard in the Middle East. The business delivers stable ship and rig repair revenues and has specialist capabilities in niche ship newbuilds and conversions. Drydocks' acquisition will integrate well into P&O Maritime (POM), which is DP World's 100 percent owned maritime services subsidiary.

The acquisitions are expected to be earnings accretive from the first full year of consolidation.

Both acquisitions are subject to certain conditions precedent and the acquisition of Drydocks World is subject to the successful completion of a debt restructuring process. Both transactions are expected to close before the end of the first quarter of 2018, said the company.

Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, said "As a global trade enabler, we have been targeting a broader strategy to grow complementary sectors in the global supply chain such as industrial parks, free zones and logistics adding further value for all our stakeholders."

He added "Overall, these transactions will enhance our position as a leading maritime services provider, and we look forward to leveraging on our proven track record to accelerate growth and deliver stakeholder value."

DP World shares have gained 27 percent in value since January 1, 2017, outperforming all market indexes at United Arab Emirates stock markets.