Dubai's DP World to delist, return to full state ownership

DUBAI (Reuters) – Dubai’s DP World (DI:), one of the world’s largest port operators, said on Monday it would delist and return to full state ownership in a deal valuing the company at $13.9 billion.

Parent company Port and Free Zone World, a wholly-owned subsidiary of state investment vehicle Dubai World, is to acquire the 19.55% of DP World’s shares listed on the Nasdaq Dubai.

Each listed share will be acquired for $16.75, a 28.8% premium on Sunday’s closing price of $13 a share, according to a stock filing.

Port and Free Zone World already owns 80.45% of ordinary share capital of the port operator.

DP World is delisting to focus on its medium-to-long-term strategy and free it from “the demands of the public market for short term returns which are incompatible with this industry,” said Chairman Sultan Ahmed bin Sulayem.

DP World, which listed on the Nasdaq Dubai in 2007, has diversified its operations in recent years beyond port facilities to include industrial parks and inland transportation.

DP World shares surged 9.62% after it announced it would delist, however, but they had lost more than a quarter of value over the past year.

The operator was valued at $4.96 billion when it listed in 2007. It was also listed on the London Stock Exchange between 2011 and 2015.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.