DP World and its subsidiary, DP World FZE, have announced that they have entered into an agreement in relation to the proposed acquisition of Economic Zones World FZE (EZW), its subsidiaries and subsidiary undertakings from Port and Free Zone World FZE (PFZW) for US$2.6 billion.
EZW is a provider of industrial and logistic infrastructure, which comprises five business units: Jebel Ali Free Zone FZE (JAFZ), JAFZA Enterprises FZE, EZW Corporate, Business Centre World FZE, and Emerging Business Units.
JAFZ, EZW’s primary business unit, represented 97% of revenue and operating profit for the year ending December 31, 2013 and is a 57km2 modern commercial and industrial logistics park, adjacent to DP World’s flagship Jebel Ali port in Dubai.
The proposed acquisition provides significant strategic, operational and financial benefits to DP World including an enhancement of DP World’s competitive advantage by delivering a best-in-class customer experience.
DP World shareholders’ financial returns are expected to be enhanced by more than 15% and will generate more than a 7% return on capital in the first financial year following completion.
Sultan Ahmed Bin Sulayem, chairman of DP World, commented: “Overall, this transaction is compelling from both a strategic and financial perspective. This will allow us to enhance our position as the leading logistics hub in the Middle East region, accelerate growth and deliver shareholder value.”
