DP WORLD parent company Port and Free Zone World has offered to buy the 19.55% of DP World’s shares traded on Nasdaq Dubai, thus returning the company to private ownership.
DPW is the part owner of DP World Australia, one of two main stevedores in Sydney, Melbourne, Brisbane and Fremantle.
The acquisition move is expected to enable DP World to focus on its medium-to-long-term strategy of transforming from a global port operator to an infrastructure-led end-to-end logistics provider.
If accepted, DP World will be 100% owned by Port and Free Zone World, a wholly-owned subsidiary of Dubai World.
DP World group chief financial officer Yuvraj Narayan, said the DP World Board had concluded the disadvantages of maintaining a public listing outweighed the benefits.
“Delisting from Nasdaq Dubai is in the best interest of the company, enabling it to execute its medium to long-term strategy,” Mr Narayan said.
“DP World is focused on the transformation of the group and takes a long-term view of investment returns and value creation.”
Group chairman Sultan Ahmed bin Sulayem, said the global ports and logistics industry had been undergoing a significant transition.
“DP World must be able to continue responding effectively to this rapidly changing landscape and to invest in the future,” he said. “Returning to private ownership will free DP World from the demands of the public market for short term returns which are incompatible with this industry, and 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.”
