DP World enters into agreement with DP World FZE for acquisition of EZW
Dubai, UAE 13 November 2014: DP World Limited (DP World) and its wholly owned subsidiary, DP World FZE, announced that they have entered into an agreement in relation to the proposed acquisition of Economic Zones World FZE (EZW), its subsidiaries and subsidiary undertakings from Port and Free Zone World FZE (PFZW) for a total cash consideration of US$2,600 million (subject to certain adjustments) including the assumption of net debt at close (US$859 million as at 30 June 2014), representing a multiple of approximately 10.0x EZW EBITDA for the year ended 31 December 2013. EZW is a provider of industrial and logistics infrastructure, which comprises five business units: Jebel Ali Free Zone FZE (JAFZ), JAFZA Enterprises FZE, EZW Corporate, Business Center World FZE, and Emerging Business Units. JAFZ, EZW’s primary business unit representing 97 per cent of revenue and operating profit for the year ended 31 December 2013, is 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 an integral component of the supply chain for DP World’s customers at the Jebel Ali port. Sultan Ahmed Bin Sulayem, Chairman of DP World, commented on the proposed acquisition: “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 two billion 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. “Overall, this transaction is compelling from both a strategic and financial perspective. This will allow us to enhance our position as the leading logistics hub in the Middle East region, accelerate growth and deliver shareholder value” 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.