Clifford Chance advises DP World

Clifford Chance is counselling DP World Limited on the propounded acquisition of Economic Zones World FZE (EZW) from Port and Free Zone World FZE (PFZW). The transaction is worth USD2.6 billion and is subject to adjustments along with a proposed delisting from the London Stock Exchange.

EZW is the holding company for the Jebel Ali Free Zone in Dubai. The free zone is an integral component of the supply chain for DP World’s customers at the Jebel Ali port. The deal will strengthen DP World’s position in the ME region and strengthen its goal of offering seamless supply chain services to shippers and shipping lines.

The worth of the transaction qualifies it as a Class 1 transaction under the UK listing rules. PFZW maintains ownership of the entire ordinary share capital of EZW and a large portion of DP World. Because of this reason, the propounded transaction also constitutes a related party transaction and is conditional upon the approval of DP World’s independent shareholders. In addition to this, the independent shareholders also have to approve DP World’s delist of shares from the London Stock Exchange.

Clifford Chance had initially advised DP World on its original IPO and listing on NASDAQ Dubai in 2007 and its premium London listing in 2011. The team was co-led by Dubai partner James McCarthy and London partner Iain Hunter, supported by senior associates Andrew Steele (Dubai), Daniel Boyle (Dubai) and Tony Lally (London), and associates Alanna Hunter (Dubai) and Leonid Stoliarski (London).