Earlier, interest-free loans were announced for Emiratis whose businesses were affected by the rains, with a grace period of 6 to 12 months
uae5 hours ago
Global ports operator DP World on Monday confirmed that it has bought Topaz Energy and Marine for Dh3.95 billion.
The company said in a statement sent to Nasdaq Dubai that it bought 100 per cent of the marine logistics and solution providing firm from Oman's Renaissance Services and Standard Chartered Private Equity/Affirma Capital.
The transaction is subject to customary completion conditions and regulatory approvals and is expected to close in the second half of 2019, it said.
On Sunday, DP World had confirmed that it was in talks with Topaz for a possible takeover.
"In recent years, we have been investing selectively in the marine logistics sector in companies with high revenue visibility, consistent track record and strong customer relationships, and this acquisition complements the operations of our P&O Maritime Services (POMS), which maintains over 300 vessels globally," said Sultan Ahmed bin Sulayem, group chairman and CEO, DP World.
"Much like DP World, Topaz has evolved its business, offering customers a range of logistics solutions and helping the company outperform the industry. We believe that this innovative approach, together with the increased scale, will allow the combined Topaz and P&O Maritime Services business to drive efficiencies and earnings growth, and we look forward to welcoming the Topaz team into the DP World family," he said.
DP World made approximately Dh9.175 billion worth of acquisitions last year.
Topaz operates a modern and versatile fleet of 117 vessels, predominantly in the Caspian Sea, Mena, and West Africa regions. The group enjoys a particularly strong position in the Caspian Sea. Topaz reported consolidated revenues of $349 million in 2018 and EBITDA of $190 million. The acquisition is expected to be earnings and margins accretive from the first full year of consolidation and is expected to meet DP World's return targets.
On a proforma basis, DP World's net leverage as of FY2018 would be 3.0x Net Debt to EBITDA with this acquisition, compared to the reported 2.8x. DP World shares were unchanged at $16.20 in Monday morning trade.
waheedabbas@khaleejtimes.com
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