Dubai: DP World, one of the world’s largest port operators, on Thursday proposed delisting its shares in London after years of relatively weak trading performances, the company’s chairman said.
Sultan Ahmad Bin Sulayem told reporters at press conference in Dubai the shares, held in depository interest form through the London Stock Exchange (LSE), account for around 1 per cent of the company’s trading activity.
DP World is majority owned by the state conglomerate Dubai World with 20 per cent of the company listed. Its shares can be traded on the LSE and Nasdaq Dubai.
Bin Sulayem said 99 per cent of the company’s trading activity took place in Dubai with London trades peaking at 2 to 3 per cent while bottoming out at around 0.3 per cent.
Explaining the move, Bin Sulayem said the Dubai exchange had “flourished” in recent years leading the company to “firmly” believe a single listing in Dubai is the “right thing.”
The delisting will require shareholder approval with an extraordinary annual meeting (EGM) scheduled for December 18. The delisting is expected to take place on January 21, 2015 after which the shares will only be able to be traded on Nasdaq Dubai.
DP World, which listed on the LSE in 2011, announced the delisting as it also said it has agreed to purchase Jebel Ali Freezone (JAFZA) owner Economic Zones World (EZW) for $2.6 billion from Dubai World.
DP World will seek shareholder approval for the acquisition at the EGM held next month.
