Port operator signs agreements to take over Dubai Maritime City and Drydocks World
DP World on Monday announced that it has entered into agreements to acquire Maritime World, the owner of Dubai Maritime City (DMC), for $180 million and to buy Drydocks World by means of a capital injection of $225 million.
DMC is a maritime service facility and industrial business zone in a prime location of central Dubai and adjacent to DP World’s Port Rashid. It extends to 2.3 million sq m on a man-made peninsula and provides Economic Zones World additional land as an alternative to Jebel Ali Free Zone.
DP World said Drydocks World is a market leader in the ship repair business with the largest ship repair yard in the Middle East and will integrate well into P&O Maritime (POM), which is DP World’s 100 percent owned maritime services subsidiary.
DP World added that the acquisitions are expected to be earnings accretive from the first full year of consolidation.
Both acquisitions are subject to certain conditions precedent and the acquisition of Drydocks World is subject to the successful completion of its debt restructuring process, the port operator said in a statement.
Both transactions are expected to close before the end of the first quarter of 2018.
Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “We are delighted to make these acquisitions which further strengthen the Group’s maritime services and port related businesses. As a global trade enabler, we have been targeting a broader strategy to grow complementary sectors in the global supply chain such as industrial parks, free zones and logistics adding further value for all our stakeholders.
“Dubai Maritime City provides us with stable leasing income from DMC’s existing industrial zone and spare capacity to develop industrial and commercial activities for the maritime sector in a prime location of Dubai. We aim to develop the best-in class Maritime City serving the needs of the maritime industry and leveraging on our expertise and experience from our ownership of the Jebel Ali Free Zone. We are consequently well positioned to deliver significant value in the medium term.
“Drydocks World bolsters our investment in the maritime sector through our subsidiary P&O Maritime. We are acquiring a market leader in the Middle East with the potential to deliver near term synergies and new revenue opportunities over the longer term, particularly in ship conversion and in areas where POM has existing expertise. We remain excited about the growth prospects of this business.
“Overall, these transactions will enhance our position as a leading maritime services provider, and we look forward to leveraging on our proven track record to accelerate growth and deliver stakeholder value.”