Dubai: Dubai Drydocks World, the Dubai-based shipyard operator, yesterday said it will acquire 100 per cent of Singapore-based Pan United Marine (PUM).
"Dubai World's global shipyard operator, Dubai Drydocks World (DDW), yesterday announced that it is preparing to exercise its option to acquire 100 per cent ownership of the Singapore-based Pan United Marine (PUM) after receiving acceptances of 92.29 per cent of shares as of July 25, when the offer closed in Singapore," a statement from the company said.
Under its original voluntary conditional cash offer, DDW enjoys the right to seek total control of PUM through compulsory acquisition of the remaining shares if 90 per cent of shareholders accepted its offer.
Geoff Taylor, chief executive officer of DDW, said, "We welcome the overwhelming support shown by PUM shareholders for our offer. Now we plan to compulsorily purchase the remaining shares as part of the original agreement with PUM.
"The money for these shares will be deposited with the Singapore Stock Exchange for disbursement among the shareholders."
DDW formally took charge of the management and operations at PUM's shipyards in Singapore and Batam, Indonesia, on July 12, when it received acceptances of 84.82 per cent of the shares.
DDW offered S$650 million ($428.88 million) for the entire 100 per cent shares of PUM. After acquiring all the shares, DDW will move to de-list PUM from the Singapore Stock Exchange.
PUM is Dubai Drydocks World's first major overseas acquisition and strategically complements its existing network of shipyard facilities.
Four of DDW's nominees have been appointed to PUM's board of directors with effect from July 11.
Taylor said: "Total control of PUM would give us greater flexibility to move forward with our growth plans and enable us to take group decisions with speed."
"Our senior management executives are already engaged in undertaking a full assessment of the assets in Singapore and Batam.
"At this time we have no intention to introduce any major changes to the business, redeploy any of the fixed assets, nor discontinue the employment of any of PUM's employees," he added.
The acquisition of PUM, an established and well-managed shipyard in Southeast Asia, is a strategic first step in taking the expertise of the Dubai Drydocks World group companies to the international stage.
PUM's business is aligned with the activities of DDW in ship repair, ship building and conversions.
Both PUM and Dubai Drydocks, the flagship company of DDW, have large skilled workforces supported by strong management teams and are well respected both regionally and internationally.
DDW is a wholly-owned entity of Dubai World and comprises Dubai Drydocks and Al Jadaf Shipyard. It also manages Platinum Yachts FZCO and Platinum Yacht Managements LLC.
With PUM firmly under its wing now, Dubai Drydocks World operates one of the largest and most comprehensive networks of shipyard facilities that stretches from the Middle East to Southeast Asia.
Jadaf Dubai will soon shift to Dubai Maritime City, which will be up and running from next year and together with the drydock, will create an integrated ship-repairing hub.
