Image depicting Dubai port operations linked to DP World acquisition - Global Banking & Finance Review
An image illustrating DP World, a major Dubai port operator, acquiring Economic Zones World for $2.6 billion. This strategic move aims to enhance operations at Jebel Ali port and increase earnings.
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DUBAI PORT FIRM TO BUY FREE-ZONE COMPANY FOR $2.6B

Published by Gbaf News

Posted on November 14, 2014

1 min read
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DP World to Acquire Economic Zones World

DUBAI, United Arab Emirates (AP) — Dubai-based port operator DP World says it has reached a deal to buy the government-linked operator of free trade zones in the emirate for $2.6 billion and will also pull its stock listing from the London Stock Exchange.

Deal Streamlines Jebel Ali Operations

DP World said the deal announced Thursday to acquire Economic Zones World would help streamline operations at Dubai’s vast Jebel Ali port and free zone complex and boost its earnings by 15 percent.

Details of the Acquisition and Debt

DP World is itself partially backed by Dubai’s government and is one of the world’s largest port operators. The deal includes absorbing $859 million of EZW’s debt.

DP World to Delist From London

DP World separately says it is aiming to pull its London stock listing. It will keep its listing on the Nasdaq Dubai, where most trading of its shares happens.

Key Takeaways

  • DP World agreed to acquire Economic Zones World (EZW) for approximately $2.6 billion.
  • The deal includes assuming around $859 million of EZW’s debt.
  • The acquisition is expected to boost DP World’s earnings by about 15 percent.
  • DP World plans to delist from the London Stock Exchange while retaining its Nasdaq Dubai listing.

Frequently Asked Questions

What is Economic Zones World?
It’s the government‑linked operator of the Jebel Ali Free Zone and other free trade zone assets in Dubai.
How much debt will DP World assume as part of the deal?
About $859 million of EZW’s net debt will be absorbed by DP World.
How will the acquisition impact DP World’s earnings?
DP World expects about a 15 percent earnings increase in the first full year.
What will happen to DP World’s London listing?
DP World plans to delist from the London Stock Exchange but keep its Nasdaq Dubai listing.

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