DP World to close acquisitions worth $405m in Q1 2018
DP World has entered into agreements to buy Maritime World, the owner of Dubai Maritime City, and ship repair company, Drydocks World for $405m
DP World Limited has announced that it has signed an agreement to acquire Maritime World for $180m (AED661m).
Maritime World is the owner of Dubai Maritime City (DMC), which is a maritime service facility as well as an industrial business zone that is adjacent to DP World’s Mina Rashid.
In a statement, DP World revealed that it has also entered into an agreement to acquire ship repair company, Drydocks World through a capital injection of $225m (AED826m).
Acquiring the two assets will cost DP World a total of $405m (AED1.5bn).
According to DP World, both acquisitions are subject to certain conditions precedent. The acquisition of Drydocks, in particular, is subject to the successful completion of its debt restructuring process.
DP World is expecting to close both transactions before the end of Q1 2018. As the acquisitions are considered related party transactions under the Dubai Financial Services Authority (DFSA) Market Rules, DP World will need to comply with DFSA requirements.
Sultan Ahmed Bin Sulayem, group chairman and chief executive officer of DP World, said: “We are delighted to make these acquisitions, which further strengthen the group’s maritime services and port-related businesses.
“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.”
Explaining DP World’s interest in DMC and Drydocks, he added: “Dubai Maritime City provides us with stable leasing income from [its] existing industrial zone and spare capacity to develop industrial and commercial activities for the maritime sector in a prime location of Dubai.
“Drydocks World bolsters our investment in the maritime sector through our [maritime services] subsidiary, P&O Maritime. We are acquiring a market leader in the Middle East with the potential to deliver near-term synergies and new revenue opportunities over the longer term, particularly in ship conversion and in areas where POM has existing expertise.”
He concluded: “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.”