DP World returning to private ownership
DP World, the Nasdaq Dubai-listed company that includes terminals in three Canadian ports amongst extensive operations in 40 countries has announced a return to private ownership as part of a refocused global business strategy. Based in the United Arab Emirates, DP World is a world leader specializing in cargo logistics, port terminal operations, maritime services and free trade zones. Its facilities move some 190,000 containers each day.
DP World operates Fairview container terminal in Prince Rupert, Centerm container terminal in Vancouver (pictured) and the Rodney Container and Navy Island Terminals at Saint John, New Brunswick. Last spring, it acquired Metro Vancouver's Fraser Surrey Docks marine terminal from a division of Australia's Macquarie Group.
DP World's parent company Port and Free Zone World has offered to acquire the 19.55 per cent of DP World's shares traded on Nasdaq Dubai, returning the company to private ownership. DP World will be 100 per cent owned by Port and Free Zone World, which in turn is a wholly-owned subsidiary of Dubai World.
"The DP World Board has concluded that the disadvantages of maintaining a public listing outweigh the benefits," said Yuvraj Narayan, Group Chief Financial, Strategy and Business Officer of DP World. "Delisting from Nasdaq Dubai is in the best interest of the company, enabling it to execute its medium to long-term strategy. DP World is focussed on the transformation of the Group and takes a long-term view of investment returns and value creation. In contrast, public markets typically hold a short-term view."
"The global ports and logistics industry has been undergoing a significant transition as a result of the consolidation of the customer base and the vertical integration of several competitors," said Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer of DP World. "DP World must be able to continue responding effectively to this rapidly changing landscape and to invest in the future. 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. (photo of Centerm by DP World)