DP World receiving strong offers for P&O business
Dubai Ports World expects to sell its P&O Ports North America business for more than the $700 million asking price, Jamal Majid Bin Thaniah, group chief executive of Dubai Ports and Jebel Ali Free Zone Authority, said in an interview with Lloyd’s List.
The Dubai state-owned company has never publicly revealed its asking price, but in congressional testimony earlier this year about the company’s purchase of rights to operate U.S. terminals officials valued the company at about $700 million. DP World Chief Executive Mohammed Sharaf told the Financial Times Web site earlier this year that he expected to raise about $750 million from the sale of the U.S. assets.
At the time, many analysts believed there would be few takers for the properties at inflated prices, but interest from strategic buyers in the terminal industry as well as institutional investors has been brisk.
Investors involved in the bidding process bear out Thaniah’s projections, with one telling Shipper’s Newswire recently that final offers will top out at well above $600 million.
Thaniah told Lloyd’s List and the Khaleej Times that final disposition of the U.S. port assets could take place within six to eight weeks.
Thaniah said DP World has no plans to divest the P&O Ferries business acquired even though it is not considered a core business.
DP World receiving strong offers for P&O business
