18 November 2014
Clifford Chance advises DP World on proposed US$2.6 billion acquisition of Economic Zones World FZE and proposed delisting from the London Stock Exchange
Clifford Chance is advising DP World Limited (DP World) on the proposed acquisition of Economic Zones World FZE (EZW) from Port and Free Zone World FZE (PFZW) for total cash consideration of US$2.6 billion, subject to certain adjustments, and its proposed delisting from the London Stock Exchange.
EZW is the holding company for the Jebel Ali Free Zone, a 57 square kilometre modern commercial and industrial logistics park adjacent to DP World’s flagship Jebel Ali port in Dubai. The free zone is considered an integral component of the supply chain for DP World’s customers at the Jebel Ali port.
The transaction will help DP World enhance its position as the leading logistics hub in the Middle East region and further its goal of offering seamless supply chain services to shippers and shipping lines.
As a result of the size of the transaction, it is a Class 1 transaction for the purposes of the UK Listing Rules. Due to the common ownership by PFZW of both the entire ordinary share capital of EZW and a significant proportion of the ordinary share capital of DP World, the proposed acquisition also constitutes a related party transaction and is therefore conditional upon the approval of DP World’s independent shareholders. DP World is also seeking shareholder approval to delist its shares from the London Stock Exchange.
Clifford Chance advised DP World on its original IPO and listing on NASDAQ Dubai in 2007, still the region's largest, as well as on its premium London listing in 2011.
The Clifford Chance team was co-led by Dubai partner James McCarthy and London partner Iain Hunter, supported by senior associates Andrew Steele (Dubai), Daniel Boyle (Dubai) and Tony Lally (London), and associates Alanna Hunter (Dubai) and Leonid Stoliarski (London).