Dubai’s DP World, one of the world’s biggest port controlers, stated Monday it might delist and return to full state ownership in a contract valuing the corporate at $13.9 billion.
DP World controls ports worldwide, from Hong Kong to Buenos Aires, and is headquartered at its flagship Jebel Ali Port in Dubai, the Middle East’s greatest transshipment center.
Port and Free Zone World, a wholly-controlled unit of state funding vehicle Dubai World, is to amass the 19.55% of shares listed on the Nasdaq Dubai, based on a stock filing.
Port and Free Zone World indeed owns 80.45% of the ordinary share capital of DP World.
Each listed share might be acquired for $16.75, a 28.8% premium on Sunday’s closing price of $13 per share.
Port and Free Zone World will support the transaction in new facilities arranged by Citibank and Deutsche Bank.
Port and Free Zone World may even offer $5.15 billion in funds to Dubai World, helping it meet obligations to lenders so that DP World can implement its strategy without constraints, it stated.
Dubai World units face certain restrictions because of agreements it has with creditors. DP World had been excluded from those limitations as long as it was listed.
Proceeds will also be employed to allow DP World to fund the potential redemption of its convertible bonds.