Inchcape reportedly up for sale
The investment arm of debt-riddled Dubai World has reportedly put Inchcape Shipping Services up for sale.
Investment company Istithmar has put a price tag of $600 million to $700 million on the port and shipping agent, according to a report Tuesday in the Financial Times. Istithmar bought the shipping company in 2006, part of a series of high-profile acquisitions it made in various sectors (including hotel purchases in Miami and Las Vegas).
Dubai World is looking to sell assets as it attempts to wade through $22 billion of debt, the newspaper reported. Inchcape is thought to be one of the more successful entities in Istithmar's portfolio. The largest independent marine services company, it services the U.S. Navy fleet in the Middle East and has large oil tanker contracts with Exxon, Mobil and Shell, among other shipping interests. It also has interests in container and bulk cargo.
Reuters reported that Dubai World was preparing to sell Inchcape before the November announcement that it was seeking a standstill agreement with creditors on more than $50 billion in debts. It said a private equity firm is the most likely buyer of Inchcape.
Dubai World said it intends to retain DP World, its container terminal operating subsidiary, and the Jebel Ali Free Zone Authority, which manages a huge cargo village adjacent to Dubai's seaport as well as a handful of global projects.