DP World acquires Economic Zones World

DP World acquires Economic Zones World

DP World acquires Economic Zones World

The Dubai port operator DP World announced to acquire Economic Zones World, a operator and developer of industrial parks, in cash and debt deal for $2.6 billion, including debt about $ 430 million.

 The main part of deal is concentrate on main business unit of Economic Zones World, Jebel Ali Free Zone, an industrial park and commerical zone which involves 57 square kilometers, which makes 97 percent of EZW revenue.

 The transaction includes the assumption of Economic Zones World’s debt, which was $859 million as of June 30.

 “Overall, this transaction is compelling from both a strategic and financial perspective,” Sultan Ahmed Bin Sulayem, the DP World chairman, said in a news release. “This will allow us to enhance our position as the leading logistics hub in the Middle East region, accelerate growth and deliver shareholder value.” added

 DP World, which operates 65 ports on six continents, will financing this deal from own cash resources and loan facilities, said it planned to delist in London, but it stay on Nasdaq Dubai.

 The company tries listing in London in 2011, but it was unsuccessful. Many more international investors were able to invest through Nasdq Dubai, accounting for 99 percent of its shares, the company said.

 The deal, where is subject to shareholder approval, is expected to close in the second quarter of 2015.

 Mr. Stakebay says:

 This deal helps DP World to improve its position in Middle East region and create leading integrated port and free zone,  accelerate growth and deliver shareholder value, as well as stable recurring revenues, healthy margins and strong cash generation delivered by EZW.

DP WORLD

EZW

Revenue

$ 3.073 Billion (2013)

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Operating income

$ 1.071 Billion (2013)

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Profit

$ 720.473 Million (2013)

-

Total assets

$ 16.76 Billion (2013)

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Total Equity

$ 9.021 Billion (2013)

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Employees

30 000 (2013)

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CEO of DP WORLD…………….MOHAMMED SHARAF…………(2005-present)……..xxxxxxxxx (2013)

CEO OF EZW……………………….SALMA HAREB……………..(2005-present)……..xxxxxxxxx (2013)

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