UAE – Mubasher: Dubai-based DP World is considering selling a stake in the Jebel Ali Free Zone to international investors, as the logistics company studies ways to reduce its debt, sources told Bloomberg.
DP World is working with advisers to estimate the interests in the Jebel Ali Free Zone and study options including selling a stake in the free zone or some assets based there.
The sources referred that any sale would attract infrastructure funds and strategic suitors.
No final decisions have been made on a potential deal, as discussions are still being held.
Bloomberg Intelligence analyst Sharon Chen remarked that DP World could gain $1 billion to $1.3 billion by selling a 30% to 40% stake in the free zone, which might not be sufficient to cut its leverage to around four times earnings by 2022.
“We estimate that the company may need to raise at least $2.5 billion from asset sales. This does not take into account further issuance of perpetual securities,” Chen said.
