UAE News: Dubai Takes Port Operator Private to Tackle Debt - Bloomberg:
Dubai will take its port operator private after a dozen years to alleviate its debt burden and avoid a repeat of the economic crisis that forced a bailout of the country in 2009.
As a source of cash for the state, DP World Ltd. is a key asset for the emirate as it endures another year of lower property prices and a struggling retail sector. The country has introduced some counter-measures to revive growth, like easing restrictions on visas and tackling oversupply in the real-estate market.
“This deal reflects the maturity of the government’s decision-making process, which is more measured and balanced than a decade ago,” said Jahangir Aka, managing director in the Middle East and Africa for Neuberger Berman.
The emirate will pay a 29% premium to acquire the 19.55% of DP World listed on Nasdaq Dubai. As part of the deal, DP World’s parent will pay state-controlled Dubai World $5.15 billion to service some outstanding bank commitments.
Dubai will take its port operator private after a dozen years to alleviate its debt burden and avoid a repeat of the economic crisis that forced a bailout of the country in 2009.
As a source of cash for the state, DP World Ltd. is a key asset for the emirate as it endures another year of lower property prices and a struggling retail sector. The country has introduced some counter-measures to revive growth, like easing restrictions on visas and tackling oversupply in the real-estate market.
“This deal reflects the maturity of the government’s decision-making process, which is more measured and balanced than a decade ago,” said Jahangir Aka, managing director in the Middle East and Africa for Neuberger Berman.
The emirate will pay a 29% premium to acquire the 19.55% of DP World listed on Nasdaq Dubai. As part of the deal, DP World’s parent will pay state-controlled Dubai World $5.15 billion to service some outstanding bank commitments.
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