DP World won't be sold to cover Nakheel debt

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Sep 2010

Dubai World, the state-controlled holding company that reached a creditor agreement earlier this month to change terms on $24.9 billion of liabilities, is unlikely to sell off prized asset DP World in ongoing efforts to meet its debt obligations, a senior executive with the ports operator has said.
“The government knows that DP World is one of the best and the strongest companies in Dubai like Emirates Airlines. Therefore, it is in the interests of Dubai government to keep DP World,” said Mohammed Al Muallem, senior vice president and managing director, UAE region, DP World.
“We have seen that over the Dubai World issue they have not really touched DP World. On the contrary, they have been supportive,” he said, speaking on the sidelines of an event hosted by Seatrade Middle East Maritime.
The world’s third largest port operator, DP World is 80% owned by Dubai World and is one of the most profitable concerns in its portfolio.
The firm owns the Middle East’s largest container port in Jebel Ali and the £1.5 billion London Gateway, currently under construction in the UK.
Debt-laden Dubai World has previously said it may sell high-profile assets, such as DP World, MGM Resorts and luxury retailer Barneys New York, to raise up to $19.4 billion if operating cash flows are insufficient to repay its debts.
The contingency plan was included in restructuring documents given to banks in July.
Al Muallem said the Dubai World debt crisis has largely bypassed the ports operator, which posted $580 million in earnings before interest, depreciation and taxes in the first half this year.
“We have been continuing with our business, and meanwhile the Dubai World crisis and the global crisis has come, but we have actually grown,” he said.
DP World is listed on NASDAQ Dubai. In June, the ports operator postponed the planned dual listing of its shares on the London Stock Exchange, as it awaited the alignment of the trading system between the two bourses.
Al Muallem declined to comment on the listing, which is now expected to take place early next year, but said the timing was still “under discussion”.

Source: Arabian Supply Chain