DP World has announced it will delist from the Nasdaq Dubai stock exchange, a move designed to allow greater focus on its medium-to-long-term strategy of transforming to an “infrastructure-led end-to-end logistics provider”.
In a statement, DP World said its parent company Port and Free Zone World had offered to acquire the 19.55% of its shares traded on Nasdaq Dubai.
This would mean DP World would become 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 an agreement on a cash offer for the shares, which the Independent Directors deem fair and reasonable.
Each DP World share will be acquired at $16.75, which represent a 29% premium on the market closing price of $13.00 on 16 February, 2020.
Yuvraj Narayan, Group Chief Financial, Strategy and Business of DP World, said the delisting was in “the best interest of the company”, and will enable to execute its strategy.
DP World is focused on the transformation of the Group and takes a long-term view of investment returns and value creation,” Narayan said.
“In contrast, public markets typically hold a short-term view. As a result of this gap, the DP World 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 CEO of DP World, also commented, saying going private will “free DP World from the demands of the public market for short term returns which are incompatible with this industry.
“It will enable the company to focus on implementing our mid-to-long-term strategy to build the world’s leading logistics provider, backed by our globe-spanning network of ports, economic zones, industrial parks, feeders, and inland transportation.
“Our focus will continue to be on integrating our acquisitions with our global network of interconnected ports, logistics businesses and economic zones.
“DP World’s world-spanning footprint puts us in a strong position to lead the disruption of the industry creating a better future for all cargo owners through smarter trade.”