
DP World and its wholly owned subsidiary, DP World FZE, have announced that they have entered into an agreement to acquire Economic Zones World FZE (EZW) and its subsidiaries, from Port and Free Zone World FZE (PFZW) for a total cash consideration of US$2,600 million. This includes the assumption of net debt of around US$859 million. DP World intends to fund the proposed acquisition from existing cash resources and existing conventional and murabaha term loan and revolving facilities.
EZW is a provider of industrial and logistics infrastructure, which comprises of 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, representing 97 per cent of revenue and operating profit last year, is a 57 square kilometer commercial and industrial logistics park adjacent to Jebel Ali port in Dubai.
The free zone is an integral component of the supply chain for DP World’s customers at the Jebel Ali port. As a result DP World believes that the proposed acquisition will provide significant strategic, operational and financial benefits and will create the biggest integrated port and free zone in the Middle East region.
Sultan Ahmed Bin Sulayem, chairman of DP World, suggests the acquisition of EZW represents ‘a strategic and commercial opportunity that will benefit our customers as well as our company’. He adds,”Together, we will be able to offer seamless supply chain services to shippers and shipping lines, linking sea, road and air across the port and the free zone to the new Al Maktoum Airport via the Dubai Logistics Corridor to help them further improve efficiency.”
The acquisition will require DP World shareholders approval, which is expected to be given at a special meeting in December this year. If all goes to plan, the transaction will be completed during the second quarter of 2015.
In addition, DP World is seeking approval from its shareholders to delist DP World’s shares from the London Stock Exchange (LSE), while maintaining its NASDAQ & Dubai listings. DP World directors believe that the Dubai listing is a sound base for DP World’s international shareholder base and that they are now of the view that there is no longer any material benefit in maintaining the London listing.



















