Dubai port and logistics giant DP World said on Monday it would return to full state ownership. It will also delist from the Nasdaq Dubai, in a deal worth some $2.7bn.
State-owned parent company Port and Free Zone World offered to acquire the 19.55% of DP World’s shares currently traded on the Nasdaq Dubai stock exchange, DP World said in a statement, according to AFP.
Returning to full ownership by Dubai to free the firm from demanding short-term returns in the public market.
“The global ports and logistics industry has been undergoing a significant transition,” said Sultan Sulayem, DP World’s chairman and CEO.
“The move will enable the company to focus on implementing our mid-to-long-term strategy. This is to build the world’s leading logistics provider. This is backed by a global network including ports, economic zones, industrial parks and inland transportation,” he also said.
The parent company offered to buy each share of DP World for $16.75; a premium of around 29 percent on the market closing price of $13 per share on Sunday, the statement said.
The new deal puts the market value of DP World, which operates some 78 ports and terminals in 40 countries, at just under $14 billion.
DP World also listed part of its equity on the Nasdaq Dubai in 2007. It made another listing on the London Stock Exchange in 2011 before withdrawing less than four years later, citing weak trading volumes.