DP World agrees $2.6bn deal to buy EZW
Purchase of EZW, currently owned by Port and Free Zone World, includes the assumption of net debt of $859mn
DP World has agreed to buy Dubai industrial and logistics infrastructure firm Economic Zones World (EZW) for $2.6bn.
The purchase of EZW, currently owned by Port and Free Zone World, includes the assumption of net debt of $859mn.
EZW has five business units - Jebel Ali Free Zone FZE (JAFZ), JAFZA Enterprises FZE, EZW Corporate, Business Center World FZE, and Emerging Business Units.
Sultan Ahmed Bin Sulayem, chairman of DP World, said: “The acquisition of EZW represents a strategic and commercial opportunity that will benefit our customers as well as our company. Jebel Ali Port and Free Zone support and drive the growth of Dubai and the wider region of some two billion people. Together, we will be able to offer seamless supply chain services to shippers and shipping lines, linking sea, road and air across the port and the free zone to the new Al Maktoum Airport via the Dubai Logistics Corridor to help them further improve efficiency.”
DP World intends to fund the consideration for the proposed acquisition, its related costs and expenses, and the ongoing operations of the enlarged DP World from existing cash resources and existing committed conventional and murabaha term loan and revolving facilities.
In addition, DP World is separately seeking approval from its shareholders to delist DP World’s shares from the London Stock Exchange (LSE) (the Delisting). DP World will maintain its NASDAQ Dubai listing.