DP World and its wholly owned subsidiary, DP World FZE, announced that they have entered into an agreement for the proposed acquisition of Economic Zones World FZE (EZW), including its subsidiaries and subsidiary undertakings, from Port and Free Zone World FZE (PFZW) for a total cash consideration of $2.6bn. The deal includes the assumption of net debt of $859m.
EZW is a provider of industrial and logistics infrastructure, which comprises five business units: Jebel Ali Free Zone FZE, JAFZA Enterprises FZE, EZW Corporate, Business Center World FZE, and Emerging Business Units. Jebel Ali Free Zone is EZW’s primary business unit and represents 97% of revenue and operating profit. It is a 57 sq km commercial and industrial logistics park adjacent to DP World’s flagship Jebel Ali port in Dubai, UAE.
DP World states that the acquisition offers considerable strategic advantages including the creation of an integrated Jebel Ali port and free zone, allowing the company to optimise the free zones development to serve the port.
Ahmed Bin Sulayem, Chairman of DP World said, “The acquisition of EZW represents a strategic and commercial opportunity that will benefit our customers as well as our company. Jebel Ali Port and Free Zone support and drive the growth of Dubai and the wider region of some 2bn people. Together, we will be able to offer seamless supply chain services to shippers and shipping lines, linking sea, road and air across the port and the free zone to the new Al Maktoum Airport via the Dubai Logistics Corridor to help them further improve efficiency.”
DP World intends to fund the consideration for the proposed acquisition, its related costs and expenses, and the ongoing operations of the enlarged DP World from existing cash resources and existing committed conventional and murabaha term loan and revolving facilities.
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