Freight News, Sea

DP World moves further ahead into vertical integration

[ September 11, 2020   //   ]

DP World (DPW) has acquired Transworld Group’s three business units – Transworld Feeders FZCO (Middle East focus feedering business), Avana Logistek Ltd (including its subsidiary Avana Global FZCO – non-vessel operating common carrier (NVOCC) Middle East business) and Transworld Feeders Pvt Ltd (the containerised Indian coastal and EXIM feeder shipping operations of Shreyas Shipping and Logistics Ltd, excluding vessels and bulk operations).

The deal was made via Unifeeder (through its Indian subcontinent Unifeeder ISC platform), a majority-owned subsidiary of DPW. It is worth a mention here that DPW’s stock got delisted from Dubai stock exchange on 17 June 2020, as management believed that public trading was too beholden to short term returns.

Even though DPW did not disclose the amount, a close look into Shreyas’ fillings on the stock exchange reveals some numbers. Unifeeder bought Shreyas’ vessel operating business (Transworld Feeders Pvt. Ltd.) for an enterprise value of USD 19mn, whereas it paid USD 8.766mn for Shreyas’ 29.22% stake in Avana Logistek Ltd. Also in its filing, Shreyas’ management said that:

“The company gets to sell its entire stake of 29.22% which it holds in Avana Logistek Limited to Unifeeder at the same price per share and on the same terms and proportion as the price and terms on which Transworld Holding, the majority shareholder in Avana Logistek Limited would sell its remaining holding of 70.78% to Unifeeder.”